Polkadot was one of the top-performing projects in the last bull run. But a lot has happened since then, and DOT has fallen in the pecking order, struggling to catch up with the likes of Ethereum.
The Polkadot team spent a great deal of time designing a way forward. And their solution is to embrace decentralization. Last year, Polkadot made several organizational changes. Part of these changes ensures that projects within its ecosystem receive more financial boost.
Polkadot’s Shift Towards Decentralization and Ecosystem Support
Polkadot’s design relies on centralized structures for some key roles. Among them is Parity Technologies, a sister company launched by Polkadot’s founder, Gavin Wood. Parity has been instrumental in developing the Polkadot code base and architecture since the project’s inception. It has also assumed a leadership position in the project’s ecosystem growth and marketing.
Why @Polkadot Stands Out! – Extended version
1. Polkadot is the only blockchain with an on-chain treasury, ensuring its long-term, community-driven operation in the Web3 industry.
2. Polkadot has been emphasizing decentralization from the start, whether in its technical stack… https://t.co/bPIqJr1Jo0
— PolkaWorld (@polkaworld_org) February 28, 2024
But in the latter part of 2023, Polkadot made the bold choice to enhance its decentralization commitment by giving its community authority over a few important non-engineering responsibilities. It did this by utilizing Polkadot’s well-established decentralized governance system, Polkassembly.
Polkassembly rules allow token holders to decide where and how funds are allocated. It uses a system called OpenGov. This simply implies that DOT ownership equals voting power.
This year @Polkadot is one of my top large cap picks to +50x
I'm consider selling my $EGLD to buy even more
It is the largest under appreciated network:
– Over 2,000 developers building
– 83,000 monthly usersWhy is Polkadot different to the hundreds of competitors?
Well in…
— That Martini Guy (@MartiniGuyYT) February 29, 2024
How did the Polkadot Community React?
The move to decentralization paid off quickly for the larger Polkadot ecosystem, according to Polkadot advocate Giotto De Filippi. He remarked that “Parity played a huge role in engineering. However, he noted that “there was an opportunity to improve in many other areas.”
Filippi added that “decentralizing the functions outside of engineering to the community and allowing OpenGov to take charge has been an incredibly powerful catalyst for change and success.”
He explained that “the community took charge in a permissionless way, and that change happened very quickly. We went from basically zero marketing a few months ago to having just hired some of the best influencers — all in a completely transparent and decentralized way—thanks to OpenGov.”
So many eyes on #Polkadot and so many things happening in this 2024… 👀
Still no FOMO around $DOT, which is good… I can stake moar! 😎 https://t.co/v2HguHDoB8
— ᑕᗩ₱₱ΞX (@CryptoCappex) February 29, 2024
Other Polkadot stakeholders believe that the move will have a longer-lasting advantage. Talisman Wallet’s COO, William Chen, said his team quickly aligned with the bigger picture. He explained that “Parity’s decentralization initiative was initially a big surprise, but we realized that actually, a door was opening for us to step up and own an important aspect of Polkadot and directly contribute to future growth.”
Polkadot runs on a multi-chain architecture. This is, arguably, a huge strength in terms of decentralization. It means that Polkadot’s community can make big decisions about decentralization without disrupting the project’s scalability.
