According to the latest update from Wu blockchain, Polkadot's financial report for the first half of this year, they were revealed that it spent a total of $87 million (11 million DOTs), with $37 million allocated to marketing expenses.
The community has expressed concerns about the high expenditure, as it has not yielded the expected returns. At the current spending rate, Polkadot's funds are projected to last for approximately 2 years.
The 2024-H1 Polkadot treasury report reveals that they have 29 Million DOT worth $188 Million.
Assets are distributed across three chains. The first chain, the relay chain, distributed 23 million DOT, valued at $148 million. The second chain, AssetHub, distributed 6.2 million DOT, worth $40 million. Lastly, the third chain, Hydration, distributed 79,000 DOT, valued at $505,000.
Polkadot has allocated 1 million DOT, valued at $6.4 million, to its Hydration Omnipool for liquidity. Additionally, 7.3 million DOT, or $47 million, is reserved for future use. The network has loaned 500,000 DOT to Bifrost and 50,000 DOT to Pendulum to support its DeFi sector.
The organization's monthly expenses, including salaries, could reach 250,000 USDT, yet it maintains a surplus of $244.6 million. Fee-based income is relatively low, with 300,000 DOT earned in late 2023 and a steady 20,000 DOT each quarter.
Polkadot's outreach efforts, totaling $37 million, focus on ecosystem growth through advertising, events, business development, and media, with respective budgets of $21 million, $7.9 million, $3.9 million, and $3.2 million.
After the report, the community began criticizing Polkadot for its marketing expenses. A user named Waffles on platform X posted the following comment: "The only interesting thing on my timeline is @Polkadot boasting about how much they spend. 60K a month for an animated logo on gecko, 300k a month for some grifter to post about them. No wonder their coin is dead. Kek."
Pseudonymous DeFi researcher Ignas also criticized Polkadot and said in the latest X pot that, Polkadot recently spent USD 37 million on outreach efforts in the first half of 2024.
Source: X
The expenditure was aimed at attracting new users, developers, and businesses, with $10 million allocated to ads and sponsorships, $4.4 million to influencers, and $4 million to digital ads. Despite this substantial investment, Polkadot still appears to lack visibility on various platforms.
In the past 6 months, Polkadot's total expenditure amounted to $86 million USD. The Treasury currently manages 245 million USD (38 million DOT) in assets, out of which 188 million USD (29 million DOT) are in a liquid state. At this expenditure rate, it is estimated that Polkadot could deplete its funds and face bankruptcy in less than 2 years.
Polkadot's financial activities have drawn community scrutiny, with a significant portion of its budget spent on marketing efforts that have yet to yield the anticipated engagement. Despite a substantial treasury, concerns loom over the sustainability of its funds if the current rate of expenditure persists. The situation underscores the delicate balance between investment in growth and prudent financial management within the crypto ecosystem.
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