Stakeholders in Polkadot’s ecosystem have refuted recent claims that the network’s Treasury will deplete in two years. A recent treasury report raised concerns, but stakeholders clarified that Polkadot’s Treasury is continually replenished by token inflation.
Ben McMahon, Ecosystem Lead at Hydration, emphasized that the Treasury has no fixed “runway” and is funded by network inflation. He explained that funds support marketing, liquidity campaigns, DeFi infrastructure, ecosystem audits, and security initiatives. McMahon highlighted that spending is decided by DOT holders through on-chain voting and executed automatically.
Filippo Franchini from Polkadot’s Web3 Foundation added that the Treasury holds less than 2% of the DOT supply. He assured that Polkadot would remain operational even if the Treasury were depleted, expressing confidence that it would not run out of funds. The Treasury is also diversifying into stablecoins, with discussions to allocate a fixed part of the DOT inflation to it.
This system ensures sustainable funding for Polkadot’s ecosystem, with a long-term strategy of decentralization and community governance.
