Polkadot is facing backlash after disclosing $37 million in marketing expenses, sparking criticism from its community. The sharded multi-chain network founded by Ethereum co-founder Gavin Wood revealed this in its H1 2024 treasury report.
This report noted that nearly $40 million was spent on “outreach,” including advertising, community building, and events. Of this, over $20 million went to advertising, and $10 million in DOT tokens were used for sponsorships like sports deals and e-sports partnerships. For comparison, Polkadot spent $23 million on developments in the same period.
Community members, including Manta Network’s co-founder Victor Ji, labeled Polkadot a “highly toxic ecosystem” and criticized its financial strategies. Another core developer likened Polkadot’s spending to the bankrupt FTX crypto exchange.
At the current rate, Polkadot’s treasury has about two years of runway left. This financial scrutiny could impact its strategic and long-term sustainability.
