Polkadot recently revealed that it is working on developing itself further, this is according to its founder Gavin Wood, who also announced a $777 million fund to support the firm’s growth. This announcement came ahead of the firm planned parachain auctions via twitter.
This means that the firm may fund the development using approximately 19 million DOT, which converts to about $777 million that is currently in its cash reserves. He noted that money will be disbursed through community governance initiatives.
Wood also hinted at a number of areas that they are looking to focus on. The project will support part of the community’s goals including building, educating and improving Polkadot’s ecosystem and its various other beliefs.
Although the project said it would fund this initiative using the cash in its reserves, this is subject to council approval, which currently sits 13 members. The outcome of an upcoming vote will determine how the project will spend the resource.
This announcement came way ahead of an upcoming parachain auction, and indication that the key target here is development of the network’s Parachain ecosystem.
Parachain is Polkadot’s fragmented side-chain. It hosts decentralized protocols and processes, facilitating highly specialized computations and communication with its POS.
The upcoming auction would see a number of projects come up on Polkadot to fill the 100 slots available.
Following this announcement, the value of the DOT went up. The market responded well to the project’s capacity to support parachains going forward.