At the end of last month, Dr. Gavin Wood, the founder of Polkadot, was a guest at Real Vision, a blockchain investment media, and had a conversation with the deputy editor-in-chief Sebastian Moonjava for more than an hour. He talked about the innovations of Polkadot and Kusama in a concise manner. And why Polkadot is a bet against blockchain monopoly has attracted a lot of attention in foreign blockchain communities.
the third partthe third part, mainly discussed:
The source of Polkadot and Kusama treasury?
How are the funds of the treasury distributed?
first part
first partthe second part
the second partGavin Wood: Kusama may be awarded 10 million DOT under governance
SEBASTIAN MOONJAVA: Lets talk about the treasury, which I think is a very interesting thing. How does the treasury work? How is the treasury raised and how is it distributed? Does the inflation of DOT depend on how much Staking is done? Can you talk about the decision-making process behind this?
GAVIN WOOD: Of course. Treasury funds come from several sources.One source of this is the suboptimal nature of the staking system.I dont want to go too deep into the mathematics, we define an optimal staking ratio of DOT. currently75%. In other words, under the governance of Polkadot, we hope that 75% of the issued DOT tokens will be used for locking in the staking system. If it is more than 75% or less than 75%, some of the inflationary DOT will be transferred to the national treasury. At this time, neither the validator nor the nominator in staking can achieve the optimal staking income. Only at 75% of the time, the Staking system can get the maximum benefit, that is, all inflationary DOTs (currently 10% inflation rate) will be rewarded to validators and nominators.
So, thats it,If the Staking ratio is not 75%, the validators and nominators will not enjoy the full 10% inflation reward, and will send the rest to the treasury.We can also burn in the treasury, and we will not inflate more tokens. Instead, we have adopted a more advanced method of depositing money into Polkadot or Kusama’s treasury. Once it is deposited into the treasury, it will be managed by the authorized council. Currently, there are 19 councils in Kusama (Note: PolkaWorld is also Kusama one of the council members), and 13 on Polkadot.
now if you getofofdestroydestroypart of the treasury funds.
Kusama is doing crazy things with it. Actually for Kusama, the use of treasury is not just related to the Kusama network, its also improving, like I said in more general circles, so you will see that there are some art worlds that are also getting from Kusama funding.
An art exhibition that Kusama is fundingHuasheng: The Preface to Encryption｜Come and sign up now! Registration for the Global Digital Art Contest is open until February 25
Polkadot will be more focused. Obviously Polkadot treasury will be more similar to capital financing, because it is a more valuable network. Therefore, Polkadot’s treasury will be mainly used for infrastructure projects in the community. The first proposal supported by Polkadot’s treasury is a very widely used blockchain browser website that can view historical transactions.
In addition, there are development categories, and the technical progress of various projects has been funded by the Polkadot treasury. Of course, this is all open source so that everyone can benefit from it.
SEBASTIAN MOONJAVA: If someone wants to get funding, is it a motion directly to the treasury, and then the council responds and votes?
GAVIN WOOD: Yes. There are three ways to use the treasury now. One of them is, just initiate the proposal and explain what you are doing, if it is good for the Polkadot/Kusama network, and the council also votes, then you will get the funds.
bountybounty. We want the funded projects to end up being successful after paying out so much money, so we assign a manager to make sure this is actually done, and they are responsible for making sure the money is being used correctly.
Another way is what we callChain tip. This basically means that someone has done something, usually a small thing, but it is still a good and rewarding thing, for example, they wrote a blog post or made something with Beautiful pottery with the Polkadot logo, or let more people know about Polkadot, some useful technical education, etc. Basically, its a good thing that someone will report, rather than have a specific spending proposal, each council member will give a tip that they think is reasonable, and finally take the middle value to reward the person who reports Split between those who actually do it.
PolkaWorld Note: If you have any ideas for developing the Polkadot ecology and Kusama network, welcome to apply for the Polkadot/Kusama treasury!
Where did more than 40,000 KSM spend? Full Summary of Kusama Treasurys 56 Spending Proposals »
Where did more than 40,000 KSM spend? Full Summary of Kusama Treasurys 56 Spending Proposals »
If you want to know more about Gavin and the Polkadot council members’ views on the treasury, please check out PolkaWorld’s series of interviews with the council:
Deciphering Polkadot Council Members (Part 1): Bruno, RTTI, Acala Foundation, WEI, PolkaWorld
