- 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.
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