Investing.com – It spent $27.3 million on various projects in the third quarter, almost half the amount its rival spent in the previous three months, according to a Treasury report shared by the community on Monday.
There is still just over $150 million worth of DOT available for spending in the treasury, which community members say should last about a year and a half at current prices.
The largest part of the budget was software development, with almost $12 million allocated to projects such as building the Polkadot-Ethereum bridge and improving wallet functionality. Marketing and outreach was the second-largest expense, with more than $9.9 million spent on advertising, events, meetings, conferences and other purposes.
These findings follow earlier reports that sparked debate about the exploit of treasury funds and how they are managed.
Polkadot manages its treasury across multiple assets and networks in the Polkadot ecosystem. This intricate financial structure supports various governance initiatives, decentralized finance (DeFi) operations, and liquidity provision.
A significant event in the third quarter was Polkadot’s first asset swap, in which 1 million DOT tokens were exchanged for an equivalent number of tokens. The swap was part of a broader strategy to integrate the Mythical gaming network with the Polkadot network.
As of September 30, 2024, Polkadot Treasury has total assets of $153 million (DOT 33.3 million), of which $109 million is readily available for spending. Additionally, $6.6 million of treasury reserves are held in stablecoins, with another $28 million earmarked for stablecoin acquisitions.
Meanwhile, Polkadot has invested $10 million in its assets across four DeFi networks, including Hydration, Centrifuge, Bifrost, and Pendulum. Executive bodies, including bounty organizations and collectives, covered 15% of the expenses, with funds allocated to initiatives such as DeFi tools, gaming and business development.
The treasury surplus for the third quarter was DOT 32.4 million ($149 million) after accounting for liabilities such as Polkadot Technical Fellowship remuneration and future MYTH token distributions.
Operating costs amounted to $1.4 million and included network infrastructure, data services and legal expenses. The Treasury has increased investment in talent and education, spending $3.8 million on hackathons, educational programs and recruiting activities. On the other hand, research expenses suffered and dropped to just $313,000 from $1.5 million in the previous quarter.
The report also addresses the ongoing debate on inflation and its impact on the long-term financial stability of the treasury. While inflation does lend a hand replenish treasury funds, the report points out that it cannot be a lasting solution because it essentially acts as a tax on token holders who do not stake.
Polkadot stakeholders recently voted to lower the inflation rate to stabilize treasury revenues. The report estimates that the treasury will receive about DOT 18 million (about $83 million) in inflation in 2025, giving it a budget of DOT 4.5 million per quarter.
