THE Peas the community has approved the optimistic project funding proposal to support projects that improve the blockchain network ecosystem.
The proposal received unanimous approval, supported by over 55 million DOT tokens.
Optimistic project financing
Polkadot aims to attract top developers by providing continuous and dynamic funding for their projects. This proposal allows projects to request 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 how funds are used, community votes can factor into project spending plans.
DOT holders also have the ability to vote against funding projects they deem undesirable or malicious.
Ben McMahon, creator of the proposal and head of ecosystem at HydraDX, said CryptoSlate that Polkadot has a powerful treasure that has not always been used effectively. According to him, this feature allows token holders to directly direct a portion of DOT inflation towards projects that they believe benefit the ecosystem the most.
In a social media post, McMahon added explain:
“Once implemented, this feature will allow users to whitelist projects with their DOT. This mechanism will be funded by a constant flow of DOT directly from inflation and distributed to projects based on the proportion of DOT who nominated them.”
McMahon noted that this financing mechanism is similar to Optimism 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 Buterinto support developers and contributors who build public infrastructure without traditional business models.
Meanwhile, the passage of the proposal garnered positive reactions from the Polkadot community, with many highlighting the massive impact it would have on the ecosystem.
Giotto De Filippi, chief member of the DED, said:
“DOT Protocol will reward your project on an ongoing basis by giving it a percentage of daily inflation based on how much they believe your project is beneficial to Polkadot; this is determined by the vote of DOT holders, so it is completely decentralized and democratic.
Disclaimer: CryptoSlate received a grant from the Polkadot Foundation to produce content on the Polkadot ecosystem. Although the Foundation supports our coverage, we maintain complete editorial independence and control over the content we publish.