2024

Polkadot

Million

Coin

<ul> 
 <li aria-level="1">Polkadot’s marketing expenditure for the first half of the year was $37 million.</li> 
</ul> 
<ul> 
 <li aria-level="1">&nbsp;Polkadot reported a decline in revenue for the first half of 2024.</li> 
</ul> 
Polkadot’s recent treasury<a href="https://forum.polkadot.network/t/2024-h1-polkadot-treasury-report/8862" target="_blank" rel="noopener"> report</a> for the first half of 2024 has raised concerns over funding issues. The financial report revealed<a href="https://www.crypto-news-flash.com/polkadot-enterprise-push-web3-foundation-launches-poke-initiative/" target="_blank" rel="noopener"> a shocking marketing expenditure</a> of $37 million out of the $87 million spent in the first half of this year.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Polkadot's financial report for the first half of this year showed that it spent as much as $87 million (11 million DOTs), $37 million of which was spent on marketing. The community criticized the high expenditure for not bringing the expected returns. At the current consumption… 
 — Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1807942744125628510?ref_src=twsrc%5Etfw">July 2, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
According to the head ambassador, Tommi Enenkel, “Polkadot’s Treasury is becoming more complex and harder to grasp.” 
<img loading="lazy" decoding="async" class="alignnone wp-image-743384 " src="https://www.crypto-news-flash.com/wp-content/uploads/2024/07/80a298ece6e74271b3442882fdc9840ad6f1cc13-1.1-babe.png" alt="" width="675" height="269" srcset="https://www.crypto-news-flash.com/wp-content/uploads/2024/07/80a298ece6e74271b3442882fdc9840ad6f1cc13-1.1-babe.png 650w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/80a298ece6e74271b3442882fdc9840ad6f1cc13-1.1-babe-300x120.png 300w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/80a298ece6e74271b3442882fdc9840ad6f1cc13-1.1-babe-150x60.png 150w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/80a298ece6e74271b3442882fdc9840ad6f1cc13-1.1-babe-450x179.png 450w" sizes="(max-width: 675px) 100vw, 675px"> 
In the first half of 2024, Polkadot allocated 11 million DOT, or approximately $87 million, for ecosystem development. Outreach activities alone received the biggest chunk of this investment, about $37 million. These were advertisements, sponsoring activities, and community activities to raise awareness of the network.&nbsp; 
Polkadot also signed high-profile sponsorship deals in the first half of 2024, including with race car driver Conor Daly, and undertook numerous marketing initiatives to increase the awareness of the platform worldwide. According to the report, these moves are part of <a href="https://www.crypto-news-flash.com/polkadots-poke-initiative-aims-to-propel-enterprise-and-government-adoption-of-web3/" target="_blank" rel="noopener">Polkadot’s broader efforts</a> to strengthen its position in the blockchain space. 
<h3 id="strong-network-development-and-innovation-strong">Network Development and Innovation</h3> 
Polkadot further allocated $23 million for the enhancement of the different features and improvements of the network. Some of the areas of focus were SDKs, data services, indexing, governance tools, and subwallets. Such investments are vital to ensuring the network’s technological advancement and development.&nbsp; 
<img loading="lazy" decoding="async" class="alignnone wp-image-743392 size-full" src="https://www.crypto-news-flash.com/wp-content/uploads/2024/07/b6fde78214fca2f1e7d22a92dc2831769c31523d-SDK.png" alt="" width="614" height="303" srcset="https://www.crypto-news-flash.com/wp-content/uploads/2024/07/b6fde78214fca2f1e7d22a92dc2831769c31523d-SDK.png 614w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/b6fde78214fca2f1e7d22a92dc2831769c31523d-SDK-300x148.png 300w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/b6fde78214fca2f1e7d22a92dc2831769c31523d-SDK-150x74.png 150w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/b6fde78214fca2f1e7d22a92dc2831769c31523d-SDK-450x222.png 450w" sizes="(max-width: 614px) 100vw, 614px"> 
Moreover, the network has invested $15 million into liquidity incentives to ensure that the ecosystem is thriving. $5.5 million was also allocated to talent and education, which are crucial in building a talent pool and raising awareness of the Polkadot platform. 
In order to maintain the stable and efficient functioning of the Polkadot network, $3. 8 million was allocated to the <a href="https://www.crypto-news-flash.com/polkadot-community-thrives-with-active-governance-and-forum-growth/" target="_blank" rel="noopener">development of its key components. </a>This entails continuity and enhancement of the network’s physical and logical components. Additionally, the network spent $2.1m on research and development to identify ways of improving the network’s technological capability.&nbsp; 
<h3 id="strong-decreasing-treasury-revenue-strong">Decreasing Treasury Revenue</h3> 
Despite significant investments, Polkadot reported a decline in revenue for the first half of 2024. Total earnings declined to 171,696 DOT, a significant reduction compared to the 414,291 DOT achieved in the second half of 2023. This was mainly due to a sharp decrease in network fees, which were at 313,443 DOT in 2023 but reduced to 39,444 DOT in the first half of 2024.&nbsp; 
Enenkel explained that the revenue drop was largely due to the cessation of a short-lived inscriptions campaign that had boosted fee income in the previous year.&nbsp; 
<img loading="lazy" decoding="async" class="alignnone wp-image-743409 size-full" src="https://www.crypto-news-flash.com/wp-content/uploads/2024/07/5886322589d3afcf0be6e8a8aa776bd9d59d9189_2_690x236.png" alt="" width="690" height="236" srcset="https://www.crypto-news-flash.com/wp-content/uploads/2024/07/5886322589d3afcf0be6e8a8aa776bd9d59d9189_2_690x236.png 690w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/5886322589d3afcf0be6e8a8aa776bd9d59d9189_2_690x236-300x103.png 300w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/5886322589d3afcf0be6e8a8aa776bd9d59d9189_2_690x236-150x51.png 150w, https://www.crypto-news-flash.com/wp-content/uploads/2024/07/5886322589d3afcf0be6e8a8aa776bd9d59d9189_2_690x236-450x154.png 450w" sizes="(max-width: 690px) 100vw, 690px"> 
The reduction in revenue has, therefore, meant that the treasury balances have been decreasing gradually since mid-2023. Currently, there is $188 million in liquid assets, most of which is in DOT, as well as other stablecoins such as Tether (USDT) and USD Coin (USDC). 
Despite an increase in the average DOT price, concerns about the treasury’s spending persist within the ecosystem. The report suggests that Polkadot’s current financial trajectory is unsustainable, necessitating immediate and effective restructuring to ensure long-term viability. 
At the time of writing, Polkadot’s token (DOT) is trading at $6.36, reflecting a price recovery of nearly 1% in the past 24 hours. Despite this recovery, DOT remains down by 10% over the past month.&nbsp; 
<div class="cryptoboxes" id="mcw-435418" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-coin="polkadot-new" data-symbol="DOT" data-currency="USD" data-rate="1.000268" data-type="chart" data-view="day" data-theme="light" data-smooth="true" data-areacolor="" data-bgcolor=""></div>
</div>

Polkadot Faces Backlash Over $37 Million Marketing Spend Despite Lower Returns

Table of Contents

Crypto News Flash

Other articles published on Jul 3, 2024

The spot Solana ETF: Will US presidential election make or break it?

German Government Wallet Offloads $52M in Bitcoin, Sparking Speculation of Further Sales

Solana Surges 12% Since VanEck SOL ETF Filing

Which Cryptocurrency Should You Invest in 2024? BlockDAG Tipped for 30,000x Growth Despite Fallin...

Bitcoin Gets Staking Feature as Startup Lombard Introduces ‘Ethereum-Like’ Staking Feature

BNB Over 20% Down After New High; Its Holders Joining UNI Holders Buying Into Hottest New Presale...

Join our free newsletter for daily crypto updates!