Polkadot spends only $1M from treasury after marketing disagreements
The post Polkadot spends only $1M from treasury after marketing disagreements appeared on BitcoinEthereumNews.com.
Polkadot (DOT) only saw $1M of its treasury spent in July, after backers noticed overspending on marketing. At this rate, Polkadot may run out of treasury reserves in the next two years. Polkadot (DOT) decreased the outflows of its treasury, after receiving criticism of misspending its marketing budget. The Polkadot treasury has been in the red for the past 12 months, with the most significant outflows in April and May 2024. Some of the outflows are in support of Polkadot’s marketing budget. The last month saw more than $1M in net outflows, following months with more than $3M in net outflows. The available treasury for promotions and proposals is not the entirety of Polkadot’s reserves, but it has invited scrutiny to marketing spending. The most recent votes went against automated refills for marketing, cutting that expense for Polkadot in an increasingly uncertain market. Polkadot is a long-running project with a relatively old ICO. Unfortunately, the main Polkadot wallet with the ICO funds was locked after a smart contract accident. Since then, Polkadot managed to recover and build its main products, adding active sidechains. But the project’s presence on social media is still lagging, despite the generous marketing budget. Polkadot has $25M in 32 currently active bounties as of July 2024. The bounties are available to builders and other ecosystem participants, but the biggest concern are automated grants to content creators. Until recently, the chief focus of Polkadot was on Key Opinion Leader marketing, which ended up spreading the marketing budget to a growing selection of online micro-celebrities and YouTubers with a reach of 400K subscribers. The hired KOL were a significant drain on Polkadot’s budget, with $390K going to 15 top accounts. However, observers noted that the funds paid for either low-engagement posts, or for low-quality shilling. You didn’t get…
Filed under: News - @ August 6, 2024 3:16 pm