The Web3 Foundation, tightly linked to the Polkadot protocol, is looking to stave off the ongoing crypto winter, has unveiled a new initiative for 2024.
This strategic move involves allocating substantial resources – $22.08 million and 5 million DOT tokens valued at around $41 million in total – to enhance the existing community-governed funding mechanism rooted in the Polkadot Treasury. This appears to be an initiative brought forward by the founds’s new CEO.
The Web3 Foundation, founded Dr. Gavin Wood, co-founder of Polkadot, has consistently fostered the development of decentralized web software protocols. This latest endeavor underlines the Foundation’s commitment to empowering projects that can shape the future of Polkadot, according to their Tweet.
Adding to the significance of this announcement is the recent appointment of Fabian Gompf as the Web3 Foundation’s CEO.
Gompf brings a wealth of experience to his role. Previously, he served as the Vice President of Ecosystem Development at Parity Technologies until 2022. During his time at Parity, Gompf played a pivotal role in the development and launch of the Polkadot network.
In his view, Polkadot represents more than just a blockchain. It is, in fact, an entire ecosystem of interconnected businesses, serving as a meta-infrastructure for various layer-1 blockchains. He describes it as a “layer-0” or a “platform of platforms”.
Gompf’s deep understanding of the technology and his extensive background in the field make him a valuable addition to the Web3 Foundation’s leadership team.
Gompf’s organization plans to distribute these funds over the next year, with the goal of strengthening the Polkadot Treasury’s community-driven funding mechanism. This initiative is designed to invigorate projects that have the potential to improve the Polkadot network.
Web3 Foundation told CCN the program is part of the Foundation’s commitment to supporting the community driven development of the Polkadot ecosystem.
“The Foundation is currently finalizing details of the eligibility and launch of the program,” the company stated.
Notably, the project’s initial focus on parachains faced challenges due to unfavorable market conditions, leading to a decrease in total value locked for projects like Acala, Moonbeam, Astar, among others. However, the Web3 Foundation’s proposal holds the potential to reinvigorate Polkadot’s ecosystem.
Additional insights from Polkadot Insider suggest a promising outlook for DOT’s future. [intro the report] The report highlights the substantial impact of Polkadot’s projects in September, particularly the widespread adoption of parachains. Despite recent market fluctuations that have affected DOT’s price, the Polkadot ecosystem continues to grow and evolve.
The scope of Polkadot’s projects in September was highlighted in a post by Polkadot Insider on October 10. According to the report, the ecosystem’s parachains were making a big splash in the market and reaching a wide audience.
DotInsights published its Q3 ecosystem development report on October 10th. – remove and integrate above
According to data, Polkadot remained a significant Web3 participant in terms of development activity. Additionally, according to TokenTerminal, the number of active core Polkadot engineers surpassed all previous records in Q3.
The network’s validator staking has remained largely steady over time, it continued. Additionally, in September, nomination pools passed a brand-new benchmark by topping 15,000 pool participants.
Although the news may have pleased DOT holders, investors, and supporters, DOT’s price behavior nonetheless exhibited a bearish bias in recent times. According to information from CoinMarketCap , the price of DOT had fallen by 6.77% over the previous week and by 1.13% over the previous day.
Additionally, according to data from Coinglass , as of 10 October, the market favored short holders more so than long holders. At the time of publishing, 52% of holders of short holdings outnumbered 48% of long positions.
Be it as it may, DOT is one of the bigger, more reliable crypto platforms available, and it has previously succeeded in overcoming challenges.
The fact that it is not included in the SEC’s list of potential unregistered cryptocurrency securities is another advantage that could put DOT on investors’ portfolios.