The Polkadot (DOT-USD) network is in the spotlight today and tomorrow as developers and users alike descend on New York City for the Polkadot Decoded event. The two-day event dedicated to one of the most unique decentralized application (dApp) networks on the market is one of the biggest forums for new announcements. Gavin Wood, founder of the project, made one of the biggest announcements of the first day.
Polkadot is certainly one of the most different layer-1 networks in the world. Rather than hosting as many dApps as it can attract on a single chain, it uses a very limited web of parachains. 100 total parachains make up the Polkadot network; each one of these chains can support a single project. Thus, Polkadot users have a grand total of 100 dApps to choose from at a given time.
This might seem like a downside, but the limitations are deliberate. Through parachains, each project has its own individual chain. This keeps the flow of data clean and removes limitations on developers who would otherwise have to share the chain. Moreover, the network can source funding through these parachains by auctioning off leases to use them. These auctions can fetch hundreds of thousands of dollars each time, if not more.
Developers of the Polkadot network argue that the parachain model is the future of Web 3.0. Parachains provide dApps with more freedom than other chain systems and still keep the ecosystem interconnected under a single umbrella. One thing Polkadot emphasizes, though, as it trudges toward the Web 3.0 future is decentralization. Decentralization is key to Web 3.0. Users will be able to make decisions for themselves and use their data only how they see fit. And this week, Polkadot developers are sharing there plans for better decentralizing the network.
Polkadot Founder Announces New DAO Model
Gavin Wood took the stage this afternoon at Polkadot Decoded to provide fans perhaps one of the biggest announcements about changes to the network. In an effort to better decentralize Polkadot, developers are making some changes to the governance model.
Polkadot runs through a decentralized autonomous organization (DAO). DAOs aren’t pieces of technology, but rather groups of users who make decisions for the network’s future. Anybody who owns a governance token associated with a DAO is a member of that DAO, and they can vote on community proposals and initiatives related to that network. In the case of Polkadot, DOT crypto holders all have the right to publish proposals and vote on them. If a proposal passes, a committee must then carry out the changes.
As Wood is telling investors today, the project is looking to improve its DAO system, making it even more decentralized. He says that developers are implementing several changes to the DAO model. First, the governance model will allow anyone to make as many proposals as they wish. Users will also be able to run concurrent proposals. Wood says the process will be as easy as conducting a transaction on the blockchain. The only stipulation to this process is that a proposal must have at least 50% of the total community’s vote after four weeks. If a proposal does not secure half the community’s vote in that time, it gets automatically rejected.
Another major addition to the DAO is the introduction of the Polkadot Fellowship. The Polkadot Fellowship will assist on time-sensitive proposal; if a proposal needs to be immediately considered for any reason, this group will expedite it. The group will work with the committee tasked with carrying out successful proposals.
Wood says the new model will be immediately implemented on Polkadot’s partner network, Kusama (KSM-USD). After successful implementation, it will be bridged to Polkadot.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.