Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Polkadot’s Prudent Financial Management Highlighted in Latest Treasury Report

Polkadot’s Prudent Financial Management Highlighted in Latest Treasury Report

CoineditionCoinedition2024/10/14 16:00
By:Ebiseyei Badei
  • Polkadot reports a total quarterly spending of $27 million in Q3, with a balance of $150 million. 
  • The network has deployed $10 million across 4 DeFi chains including Bifrost, Pendulum, Hydration, and Centrifuge. 
  • Future quarterly spendings are expected to hit 4.5 million DOT. 

Polkadot has reached a significant milestone, with its latest treasury report showing a substantial reduction in quarterly spending. This positive development has been highlighted by a leading figure in the Polkadot community, who stressed the importance of continuing these sustainable practices.

The Q3 2024 treasury report reveals that Polkadot’s spending totaled 5.1 million DOT, currently valued at $27 million. This represents a notable decrease compared to previous quarters. The treasury currently holds a balance of 33 million DOT, worth approximately $150 million.

Polkadot’s DeFi Chain Investments and Expense Breakdown

The treasury holds $109 million in cash and cash equivalents, with $78 million readily available. $34 million is allocated to designated accounts, and $10 million has been strategically invested in market operations across four DeFi Chains: Bifrost, Pendulum, Hydration, and Centrifuge.

The network’s expenses cover various essential areas. Development remains a priority, with $12 million allocated in Q3. Other key areas include Outreach, Talent and Education ($10 million), Operations ($4 million), Research ($1.3 million), and other initiatives ($300,000).

Notably, Polkadot’s Bounties are playing an increasingly important role in the network’s development. $6 million was spent on bounties in Q3, and an additional $18 million has been earmarked for future bounties to incentivize “value-adding teams.”

Despite the recent reduction, current spending levels are still relatively high. However, Polkadot projects a quarterly treasury total of 4.5 million DOT to prepare for future inflation. Current treasury reserves are about 6.5 times the current burn rate, indicating a healthy financial position.

Read also: PolkaDOT price Hints at Reversal, Klaytn Surges

Comparison to Ethereum and Future Outlook

Interestingly, Polkadot’s quarterly spending is roughly half of what its competitor, Ethereum, spent during the same period. This highlights Polkadot’s commitment to financial efficiency and sustainability.

Alice Und Bob, Polkadot’s head ambassador, emphasized the importance of long-term sustainability. She expressed confidence that Polkadot has ample time to implement a sustainable strategy and that this fiscal responsibility could positively impact the market price of DOT.

At the time of this report, Polkadot (DOT) is trading at $4.47 per coin, with a 24-hour gain going up to 4.24% as altcoins make a collective recovery. 

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!