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Web3 Foundation, Parity Technologies dismiss Polkadot treasury depletion fears

July 3, 2024
in Web 3
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Web3 Foundation, Parity Technologies dismiss Polkadot treasury depletion fears
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Web3 Foundation and Parity Technologies, key players in the Polkadot ecosystem, have disclosed their financial independence from the network’s on-chain treasury.

The CEOs of the two companies revealed their “significant financial runway” after recent reports raised concerns about the blockchain’s financial health.

Parity Technologies is the blockchain infrastructure behind Polkadot, and the Web3 Foundation supports the network’s growth through funding and research.

Financial independence

Fabian Gompf, CEO of Web3 Foundation, clarified that the foundation has over five years of financial runway without selling DOT tokens.

Gompf further dismissed the concerns about the treasury as misleading, noting that “the treasury has continuous inflows [and is] never going to run out of funds.”

However, Gompf suggested that the treasury should focus on initiatives not covered by the foundation. He criticized recent spending on low-return activities and urged the community to vote for change.

Similarly, Björn Wagner, CEO of Parity Technologies, supported Gompf’s views. He noted that both organizations have significant financial independence from the on-chain treasury, which receives ongoing inflows.

While Wagner agreed with concerns about the recent spending, he highlighted Polkadot Governance as a leading and evolving DAO that has “plenty of opportunity for those seeking to be part of building this exciting future.”

Industry recognition

Meanwhile, Polkadot’s treasury report has garnered significant praise for its transparency within the crypto community.

Mikko Ohtamaa, CEO of Trading Strategy, commended the network for its unprecedented transparency and accountability in the blockchain industry. He said:

“Public blockchains and foundations should be transparent, as they are morally responsible for token holders (even if not legally). Polkadot led the way here. Being transparent exposes past misdeeds, and you can redeem your sins. There can be a change of a direction, turning a new page.”

Several community members have advised other crypto projects to follow Polkadot’s lead and release their treasury reports. According to them, some of these projects might be spending more on ineffective activities without disclosing their financial status to their communities.

See also  Distributed Temperature Sensing Market Advancing Real-Time Thermal Monitoring Applications

Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.

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Tags: depletionDismissFearsFoundationParityPolkadotTechnologiesTreasuryWeb3

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