Introduction
Greetings to all friends who are concerned about Polkadot. We are the Polkadot Ecology Research Institute, a dedicated team focused on researching development opportunities and prospects within the Polkadot ecosystem. We have been consistently supported by the Polkadot Treasury on six occasions.
As a team that has been studying Polkadot for nearly five years, we have heard increasing voices of discouragement in the community recently. Many members are losing hope and even leaving the Polkadot ecosystem, which is something we are unwilling to witness.
However, with OpenGov launched on Polkadot, we have observed that governance rights are being increasingly transferred to the community. This positions us as a driving force behind the development of Polkadot. As a result, we have made the decision to transition from our previous role of passive research to one of active engagement.
This report represents our strategic planning on how we believe Polkadot should grow, many of which are results of our years of research.
This report will directly address the market rather than just technology and ideals. We aim to confront the most critical issues head-on while proposing improvement strategies and suggestions. Of course, we have also noticed that many teams are actively proposing solutions for the current challenges faced by Polkadot in the official forums and community. However, these solutions often target individual problems without considering a comprehensive resolution from a holistic perspective or unified approach within a strategic framework.
Challenges faced by Polkadot
Economic Model Issues
Many users and the community have expressed concerns regarding Polkadot’s economic model, including a relatively high inflation rate, limited DOT token use cases, and concerns about the DOT’s value.Polkadot’s DOT adopts an inflationary monetary policy, with a current inflation rate of approximately 7.38% (based on data from Subscan.io), which is considered much high. And Polkadot’s DOT token currently has relatively limited use cases.
Operational Issues
Poor On-Chain Data Performance
Poor Social Media Data Performance
Lack of Data Presentation
User Barrier Issue
Polkadot’s current high level of professionalism is not user-friendly for newcomers, and the Polkadot barrier exists in terms of both usage difficulty and learning challenge.The functionality and tools provided by Polkadot may have a relatively high level of operational difficulty for the general users. Additionally, Polkadot’s technical documents and tutorials might be overly specialized, making it hard for ordinary users to understand.
Treasury Governance Issue
Polkadot’s treasury governance mechanism is considered one of the most advanced in the blockchain industry. However, due to its pioneering nature, it currently faces challenges, which include low voter participation, game theory attacks, and non-representativeness (whales). Despite Polkadot adopts the decentralized governance model OpenGov, allowing community members to participate in decision-making process, in reality, there is a lack of active voter participation and proposal submissions.
How can Polkadot break through the current market?
Overall strategy: Uniting the power of governance
For Polkadot to improve, it must progress towards synergistic development between the official and decentralized governance. While the Polkadot officials have their roadmap and operational approach, the treasury governance should also have its roadmap and approach. The officials raise Polkadot’s ceiling, while the treasury governance raises its floor.
Balancing Price and Development
By not considering boosting the price, one might implement measures at inopportune times, making efforts inefficient. Therefore, our strategic reports are designed from the standpoint of facilitating Polkadot’s growth.
Strategic Positioning and Goals
Polkadot’s positioning should not merely be viewed as a multi-core computer but should be seen from the Omnichain map perspective, where it functions as a multi-core computer for the Omnichain map. To achieve this positioning, a goal must be attained: to consolidate genuine users and funds for Polkadot, forming a network effect. To achieve this objective, we need two types of tasks: maintaining stability, ensuring steady development to retain existing users, assets, and applications on Polkadot, and constructing a more attractive developmental prospect for Polkadot.
Solutions or Approaches
The “Governance Framework” of Polkadot
Our ultimate goal with the treasury governance is to ensure Polkadot develops effectively. In fact, this goal is consistent with the project’s overall objective. So what departments are needed to operate a project, we can also build a similar system based on the governance of the Treasury. For example, there are technical departments specializing in research and development, and there are marketing departments specializing in publicity. This framework treats the governance of the Polkadot Treasury as the governance of a nation, establishing different government departments, including: Technical Department, Publicity Department, Investment Department, Governance Department, and Activities Department.
- Technical Department: Directing technical experts and members of the Technical Fellowship to develop necessary tech products, tools, projects for Polkadot (including tech training support).
- Public Relations Department: Organizing and managing media and communities funded by the treasury, setting promotional tasks to spread Polkadot’s message.(including supporting media, community)
- Investment Department: Attracts more outstanding projects to be born or migrated to the direction needed by Polkadot through strategic investment and establishing funds similar to government industrial funds.
- Governance Department: Updating and iterating policies related to governance, encouraging users to actively participate in Polkadot governance.
- Events Department: Mainly supporting hackathons or events required by the official and ecosystem.
Ten Strategic Objectives for Polkadot’s Treasury Governance
① Launch policies to support LSDFi projects and other DeFi projects (lending, AMM, decentralized stablecoins) within the Polkadot ecosystem.
② Introduce a public chain incentive program when the timing is appropriate.
③ Launch policies to encourage the development of RWA, Web2.5, and DePIN.
④Build public goods on a long-term basis.
⑤Establish a Citizen System.
⑥Design Polkadot’s Long-term Odyssey Plan.
⑦Make Polkadot More Open and Maintain its Technological Advance.
⑧Make Polkadot the Core of Omnichain Map.
⑨Mobilize all ecosystem participants to promote and popularize Polkadot together.
⑩ Establish a feedback iteration mechanism.
Three areas for improvement
Improving inflation: dynamically adjust inflation.
Enhance Operations and Lower Barriers
Improve Governance Features
Note
Of course, the above is just the core of our in-depth report, detailed report content and strategic thinking logic, please check out this link: https://twitter.com/Polkadot_ERI/status/1714556856302215663
About Us
Polkadot Ecology Research Institute was founded in October 2020, it has been in operation for exactly three years. In the past 36 months, we’ve produced 185 in-depth articles on Polkadot ecology, with an average of over 5,000 words per article and some even exceeding 10,000 words. In total, we have generated over 1 million words of original content and have become the most productive research institution for Polkadot original content production in the Chinese community.
If you have any suggestions about this report, please feel free to raise them for further discussion.
