The Polkadot community has approved the Optimistic Project Funding proposal to support projects that enhance the blockchain network’s ecosystem.The proposal received unanimous approval, backed by over 55 million DOT tokens.Polkadot aims to attract top developers by providing continuous and dynamic funding for their projects. This proposal allows projects to apply for funding through a referendum, voted on by all token holders.Eligible projects include parachains, decentralized applications, and ecosystem wallets. While there are no strict guidelines on fund usage, community votes may consider the projects’ spending plans.DOT holders also have the option to vote against funding projects they find undesirable or malicious.Ben McMahon, the proposal’s creator and Ecosystem Lead at HydraDX, told CryptoSlate that Polkadot has a powerful Treasury that has not always been effectively utilized. According to him, this feature allows token holders to directly direct some of DOT’s inflation to projects they believe benefit the ecosystem most.In a social media post, McMahon further explained:“Once implemented, this feature will allow for users to nominate whitelisted projects with their DOT—this mechanism will be funded by a constant stream of DOT taken directly from inflation and distributed to projects based on the proportion of DOT that has nominated them.”McMahon noted that this funding mechanism is similar to Optimism’s RetroPGF round, which rewards ecosystem contributors for their past work. Since the model’s introduction in 2021, Optimism has received praise from crucial crypto figures, including Ethereum co-founder Vitalik Buterin, for supporting developers and contributors who build public infrastructure without traditional business models.Meanwhile, the proposal passage has drawn positive reactions from the Polkadot community, with many pointing out the massive impact it would have on the ecosystem.Giotto De Filippi, the chief memer at DED, said:“The DOT protocol will reward your project in a continuous way by giving it a percentage of the daily inflation according to how much they believe your project is beneficial for Polkadot; this is determined by the vote of the DOT holders so it is completely decentralized and democratic.”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.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change. Follow us on X for your essential dose of daily crypto news and deep dives.SubQuery said these RPCs are the first on Substrate-based networks and will be operated by over 30 independent Node Operators.Hydration said the funding will boost the liquidity and efficiency of its single-sided liquidity provisioning platform, Omnipool.Accelerate Polkadot said it wants to provide the de facto answers to Polkadot’s developers questions.The Decentralized Fund inititaive is designed to support Polkadot-focused organizations with funding.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
