Web3 Foundation and Parity Technologies, key players in the Polkadot ecosystem, have announced their financial independence from the network’s on-chain treasury.
The CEOs of the two companies announced their “significant financial runway” after recent reports raised concerns about the financial health of the blockchain.
Parity Technologies is the blockchain infrastructure behind Polkadot, and the Web3 Foundation supports the network’s growth through funding and research.
Financial independence
Fabian Gompf, CEO of Web3 Foundation, clarified that the foundation has more than five years of financial runway without selling DOT tokens.
Gompf further dismissed treasury concerns as misleading, noting that “the treasury has continuous inflows [and is] never run out of money.”
However, Gompf suggested that Treasury should focus on initiatives outside the foundation. He criticized recent spending on low-return activities and urged the community to vote for change.
Similarly, Björn Wagner, CEO of Parity Technologies, supported Gompf’s views. He noted that both organizations have significant financial independence from the on-chat treasury, which receives continued inflows.
While Wagner agreed with concerns about the recent spending, he highlighted Polkadot Governance as a leading and evolving DAO that offers “plenty of opportunity for those who want to be part of building this exciting future.”
Industry recognition
Meanwhile, Polkadot’s Treasury report is receiving high praise for its transparency within the crypto community.
Mikko Ohtamaa, CEO of Trading Strategy, praised the network for its unprecedented transparency and accountability in the blockchain industry. He said:
“Public blockchains and foundations must be transparent because they are morally responsible to token holders (even if that is not legal). Polkadot led the way here. Being transparent exposes past crimes, and you can redeem your sins. There can be a change of direction, a new page turned.”
Several community members have advised other crypto projects to follow Polkadot’s lead and release their treasury reports. According to them, some of these projects may spend more on ineffective activities without disclosing their financial status to their communities.
Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our reporting, we maintain full editorial independence and control over the content we publish.