Polkadot allayed fears of Treasury being devastated by advertising

A treasury report published the other day worried Polkadot users, who thought that the project's current expenses would allow it to maintain its operation only for the next two years. However, several ecosystem partners dispelled these concerns, explaining that Polkadot's treasury is constantly being replenished by the network's token inflation.

Polkadot Treasury Ben McMahon, ecosystem manager at Hydration, emphasized that the Polkadot treasury is actually unconstrained because it is constantly replenished by the inflation of the network. He explained that the treasury is not only allocated for marketing activities, but also for liquidity campaigns, DeFi infrastructure development, ecosystem audits and security initiatives.

Most importantly, these expenditures are determined by DOT holders through blockchain voting and are done automatically," McMahon added.

A supporter of the largest meme coin on Polkadot DED, Giotto de Filippi, echoed this sentiment. He called the treasury "self-sufficient" and believes it can exist indefinitely:

At the time of Polkadot's launch, the treasury was at zero. Because of inflation, it began to slowly accumulate funds. And yes, money is being spent out of it, but at the same time its reserves continue to increase.

Thus, the genius of Polkadot is that instead of sharing inflation only with the people who are steaking and securing the network, they only get one part of it while the other goes to the treasury.

Giotto further noted that the treasury operates as a decentralized autonomous organization (DAO) where token holders vote on various proposals ranging from marketing to support business initiatives and payments for the development of tools like Block Explorer.

Meanwhile, Filippo Franchini, a lecturer at the Polkadot-owned Web3 Foundation, added that the Treasury owns less than 2% of the DOT proposal. He assured that the network will continue to operate even if the Treasury is depleted. However, he expressed confidence that such a thing will not happen.

I really don't believe that the treasury will be empty anytime soon because it is a resource that needs to be protected and as such it will remain so. The savings are undergoing diversification into stablecoins, meanwhile there is already discussion of sending a fixed portion of DOT inflation to the treasury.