Polkadot reveals $770M development funds in preparation for parachain auctions

Barely a few weeks away from the network’s parachain lease auctions going live, Gavin Wood, founder of Polkadot (DOT) has announced the raising of a $777 million development fund.

Wood took to his Twitter page to announce that Polkadot’s treasury has allocated more than 18.9 million DOT to a development fund that will be disbursed through community governance. As at the time of writing this report, that was worth about $777 million.

Wood also hinted about about how the firm might be planning to spend the funds. Firstly, he said the capital would be channelled to actualize the community’s vision for building, improving, educating Polkadot’s ecosystem. In addition, Wood said the rest of the funds will be used for whatever else that the Polkadot governance deems valuable.

Meanwhile, let’s not forget the Polkadot’s rules that the treasury funds can be spent if and only when approved by the council, which votes on proposals upon being brought to them. Presently, only 13 members sit on the Polkadot governing council. However, the council already has plans of expanding to 24 seats sometime in the near future.

There’s something noteworthy with most of Polkadot governance votes though. It’s been seeing poor community participation in times past, but now hopefully, the development fund may help bolster the engagement of DOT holders with the governance process. According to reports by Polkassembly, this past week saw three governance proposals put forward taking up total voter turnouts of only zero, six and seven votes respectively. Unimpressive, if we’re being honest.

Polkadot preparing for parachain auctions?

As we already reported here at TheCoinrise, parachain auctions are scheduled to start in early November. So, the new development fund being revealed just few weeks shy of Polkadot’s highly anticipated parachain auctions might be suggesting what the funds are meant for. Perhaps they are intended to pilot development directly targeting Polkadot’s upcoming parachain ecosystem.