The Polkadot Treasury aims to improve the Defi ecosystem and it now submitted the first proposals as we are about to read in our cryptocurrency news.
Polkadot Treasury will work as a decentralized organization that is led by the community-elected Council that funds other projects. The teams have now submitted proposals that will improve the Defi ecosystem. A few months after the launch of the mainnet, Polkadot established a new decentralized platform (DEFI) in order to fund projects. Called the PolkaDot treasury, it will be governed by council members elected by the community. The Treasury represents funds that are collected via transaction fees, staking inefficiencies, and slashing.
According to their blog posts, the DLT company that enables interoperability and scalability for the networks that employ its blockchain announced that the teams are already submitting proposals for the Polkadot treasury. It will also allow the participants to take advantage of the funding to submit spending the proposals which can be initiated by the holders of the DOT cryptocurrency. The council that is responsible for administering the funds, can approve the funding of the members for the development of future projects that are expected to give traction to the network.
The proposals submitted for approval will not contain contextual information to minimize the on-chain storage but the participants will have to find an off-chain way to explain it. one way is to initiate a topic on the Polkassembly discussion forum and share details with the members. Once the council provides feedback for a project, the proposers can deposit 5% of the total submission or about 100 DOT tokens as an anti-spam measure.
The PolkaDot treasury plans to allow the funds to be used for tipping the community members for their work which includes writing articles, translating documents, producing videos about polkadot, and supporting the telegram community. The announcement indicated that companies have already started submitting their proposals and they fall into a few different categories: continued operations project, software development, and infrastructure development.
The Polkadot Treasury has not disclosed the teams that will get the funding but the statement explained that the Treasury will try and fund as many proposals in the queue as it can without draining all the funds. if the treasury ends the budget period without spending all of the funds, a few the left funds will be burned. It’s now set at 1% so this means that a percentage of the funds are taken out of the circulation every day unless they are used.
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