Competition is very high in the blockchain ecosystem, and Polkadot wants to beat this competition by emerging as the most-utilized blockchain. Polkadot has already secured a win by emerging as the blockchain network with the least carbon footprint.
Recently, the network announced the allocation of more than $20 million worth of DOT tokens. The allocation seeks to boost the development of the network and support the growth of Web3.
Polkadot allocates $21M to ecosystem development
A press release from Polkadot highlighted the details of the bounty proposal known as the Polkadot Pioneers Prize. This bounty is in the form of challenges that have been articulately created to boost the technical innovation of the network.
The challenges are yet to be clearly determined. However, the press release noted that the first two challenges would be unveiled later in the year. The challenges will revolve around research and development. The network wants to grow zero-knowledge algorithms and grow the Polkadot infrastructure.
So far, the Polkadot network has allocated around 993,286 DOT tokens valued at an estimated $21 million. DOT is the native token of the Polkadot blockchain. These funds will be shared between the first two sets of challenges and those that follow.
The 993,286 DOT tokens will come from the Polkadot on-chain treasury. This treasury will be managed by token holders on the network. Polkadot’s network is decentralized such that it has an on-chain governance system that allows token holders to vote on different proposals on the network.
The Polkadot treasury currently holds over 20 million DOT tokens. The treasury is designed to fund projects on the Polkadot ecosystem. Some of these projects include the Pioneers Prize incentive program. Through these funded initiatives, the ecosystem invests in its own growth.
The Polkadot on-chain treasury is humongous, but it is highly under-utilized, as there are very few ideas on how the tokens can be used for the growth of the network. The Pioneers Prize seeks to solve this challenge by introducing how the funds can be used. The proposal notes that the objective is to allow the Polkadot community to benefit from new and innovative ways of investing in the treasury fund.
An elected curator will take charge of the Polkadot Pioneers Prize. The management of this fund might also include representatives from Polkadot’s on-chain treasury council. Some of the members of this council include Parity technologies, Web3 Foundation and other partners of the Polkadot ecosystem.
Polkadot has the least carbon footprint
Polkadot leads as the blockchain network with the least carbon footprint per year. A recent report from the Crypto Carbon Ranking Institute (CCRI) made this ranking, adding that Polkadot also had the least electricity consumption among other blockchains.
The CCRI report was specific to proof-of-stake consensus. It analyzed how these blockchains consumed electricity and the carbon emissions they produced when operating. Besides Polkadot, the other blockchains analyzed include Solana, Tezos, Avalanche, Cardano and Algorand.
The carbon footprint left by blockchain networks has been debated for several years. Bitcoin has been facing the largest scrutiny because of its energy-intensive proof-of-work mining process. Some critics have said that the Bitcoin network consumes more energy than the Netherlands. Last year, Tesla, an electric car manufacturer, stopped accepting Bitcoin payments citing its adverse effects on the environment.
To learn more about this token visit our Investing in Polkadot guide.
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