2021 Polkadot/Kusama Treasury Balance Explained in Two Graphs
2021 is a year of rapid development of the Polkadot and Kusama ecosystems. Parachains were deployed, making the ecosystem glow with unprecedented vitality. Also in this year, Polkadot and the Kusama on-chain treasury have continued to support the development of the ecosystem.
At the beginning of the new year, PolkaWorld, dotTreasury and OpenSquare jointly rolled out the “2021 Polka/Kusama Treasury Report” to help the community understand the use of treasury funds, and also encourage everyone to actively use treasury funds if they have good ideas to build up a stronger ecosystem.
The data mentioned in this article is based on the DOT/KSM treasury data from January 1, 2021 — December 31, 2021, and the graphs are summarized and produced by doTreasury (www.dotreasury.com/) and OpenSquare.
What is Treasury?
The Polkadot/Kusama treasuries are on-chain DOT/KSM stash, aiming to help the growth of the ecosystems through financial support. Anyone can apply to spend from treasuries as long as it is approved by the Polkadot/Kusama Council.
The treasury funds are collected through inflation, transaction fees, slash, etc., and are spent through spending proposals, tips, and bounties. By the end of every spending period (24 days for Polkadot, 6 days for Kusama), a certain percentage (1% for Polkadot and 0.2% for Kusama) of unspent funds will be burned.
Spending Methods
Proposals are generally aimed at larger projects, such as software development and offline activities, with large amounts, complicated application and approval processes, and a certain deposit required;
Tips are generally for relatively lightweight contributions, such as translation, design, online activities, etc. The application process is simple and the amount is generally smaller;
Bounties are specified tasks by the proposer and are followed up by curators.
Polkadot Treasury Analytics
In terms of spending, in 2021, the Polkadot treasury spent a total of 74,424 DOTs, equivalent to about $1.92 million. Among them, 50 proposals have been issued or approved, 177 tips have been issued, and 0 bounty tasks have been issued. There are many new faces in the ecosystem. This year, 99 new tip beneficiaries and 25 proposal beneficiaries emerged from the Polkadot treasury. During the year, the Polkadot treasury burned 2.47 million DOTs, more than 3 times the amount spent.
In terms of income, in 2021, the main source of income for the Polkadot treasury is the remaining inflation amount generated by the staking inefficiency, which is 15.156 million DOT (if the staking rate remains at the optimal ratio for a long time, there will be no remaining inflation to enter the treasury). Another 16,199 DOTs were earned from slashes.
Kusama Treasury Analytics
In terms of spending, in 2021, the Kusama treasury spent a total of 13,716 KSMs, equivalent to about $2.86 million. Among them, 58 proposals have been issued or approved, 301 tips have been issued, and 3 bounties have been issued. From the aspects of total amount spent and the number of various types of spending, the Kusama treasury is slightly more active than the Polkadot treasury. There are 115 tip beneficiaries, 28 proposal beneficiaries, and 2 bounty beneficiaries that are new for 2021. During the year, the Kusama treasury burned 45,070 KSMs, more than 3 times the amount spent.
In terms of income, in 2021, the main source of income for the Kusama treasury is also the residual inflation amount generated by the staking inefficiency, with about 290,000 KSM. 97.2 KSMs are earned from slashes.
How to Apply for Funds From the Treasury?
If you are or plan to do something beneficial to the Polkadot/Kusama ecosystem and want to apply for treasury funds, please refer to this wiki page for the complete application process:
PolkaWorld was the one of first members of the Polkadot Council and is currently a member of the Kusama Council. Everyone is welcome to vote for PolkaWorld’s council election, help us maintain council seats and make more contributions to the Chinese community! If you have any questions about the application of the treasury, please leave a message to consult us.
About PolkaWorld
PolkaWorld is a Polkadot global community founded in 2019. We have gathered more than 40,000 Polkadot enthusiasts, and have always been committed to spreading Polkadot knowledge, training Substrate developers, and supporting Polkadot/Kusama ecosystem.
Twitter: @polkaworld_org.
Youtube: https://www.youtube.com/c/PolkaWorld
Telegram: https://t.me/polkaworld
