Challenges Faced by Polkadot and Future Development Strategy

Introduction

Recently, concerns about the project's prospects within the Polkadot community have been increasing, with many people seeing no hope and even choosing to leave the ecosystem. As a research team that has long been focused on the development of Polkadot, we have decided to shift from passive research to active participation, presenting this growth strategic planning report to directly address the most genuine issues and propose improvement ideas and suggestions.

The Current Status of Polkadot

Technical Update Status

Polkadot recently achieved two significant milestones:

• OpenGov: Introduces a new governance model to achieve decentralization through community voting and checks and balances.
• XCM V3: The latest version of the cross-consensus message format, supporting external network bridging, NFT transfers, and other functions.

The Polkadot 1.0 version has been completed, and the 2.0 vision has proposed several new concepts and technologies:

• Accord( Agreement): A voluntary treaty across multiple chains
• SPREE Technology: Runtime Logic Fragment based on Relay Chain
• Project CAPI: A middleware project to promote the development of DApps based on Polkadot.

On-chain situation

• Development activities are active, and the participation of developers continues to show an upward trend.
• User activity and fiscal revenue have declined.
• The total locked value of the parallel chain experienced a decrease after an increase.
• The staking rate of DOT is about 46%, lower than the ideal level.

Developer Situation

Polkadot has a large developer base:

• 645 full-time developers, ranking second in number
• The total number of developers is 1923, rising to the second position.
• Full-time developers account for approximately 33.54%

ecological situation

• There are 580 ecological applications, covering areas such as DeFi, infrastructure, and NFTs.
• The launch of XCM V3 has attracted widespread attention.
• Multiple parallel chain projects have made progress, such as Moonbeam, Acala, etc.

Market Value Status

• Current market cap is approximately $3.375 billion, ranked 14th.
• The price has dropped by 31.87% in the past few months.
• Performs weaker compared to projects like Cosmos, Optimism, and Arbitrum.

social media situation

Polkadot's official media channels are rich and diverse, including:

• Official website, Twitter, Reddit, YouTube, etc.
• Polkadot Forum, GitHub, Support Knowledge Base, etc.

Provide users with multiple ways to participate and communicate.

Treasury Governance Status

OpenGov faces some challenges:

• The difference in voting rates across different tracks is significant.
• The treasury balance is decreasing rapidly.
• The pass rate is relatively low

Improvements are needed to maintain the development of the Polkadot ecosystem.

Issues Facing Polkadot

Economic model issues

• High inflation rate
• The use cases for DOT are relatively few.
• Concerns about the value of tokens

operational issues

• On-chain data performing poorly
• Social media data is underperforming
• Lack of a website that comprehensively showcases the ecosystem situation

user threshold issue

• High difficulty of use
• High learning cost
• There is a disconnect in information transmission between users.

Treasury governance issues

• Low voter turnout
• There is a risk of game theory attacks.
• Non-representative ( whale ) impact

SWOT Analysis of Polkadot

Advantage

• Technological Innovation
• Strong developer foundation
• Rich multi-chain ecosystem

disadvantage

• Token price did not meet expectations
• The user threshold is too high
• The DeFi ecosystem is not mature.

opportunity

• Increase user engagement
• Innovative concepts and technologies
• Sufficient available settlement funds

threat

• Treasury Governance Challenges
• Competitive pressure
• The market outlook is not optimistic

Macroeconomic Analysis of Polkadot's Status

Endgame Perspective

• The full-chain blueprint is the ultimate form of public chains, Layer 2, and so on.
• Polkadot is the multichain ecosystem with the highest internal security coefficient in the entire blockchain landscape.
• Polkadot is suitable for solving the trust issues between chains.

periodic angle

• The macroeconomic environment cycle impacts the cryptocurrency market
• Public chain development cycle: Polkadot missed the opportunity of the last bull market.

How can Polkadot break through in the current market?

Overall Idea

• Gather the power of governance
• The official and decentralized governance develop in synergy
• Treasury governance requires a strategic development outline.

emphasizes the balance between price and development

• Respect regulatory consensus
• Unofficial roles can pay attention to the value of DOT
• The price of DOT is an important indicator of confidence in the Polkadot ecosystem.

Strategic Positioning and Goals

• Positioning: Multicore computers from an all-chain perspective
• Goal: To attract users and funds that genuinely care about Polkadot, creating a network effect.
• Core: Achieving the growth of Polkadot

Solutions or Ideas

Polkadot's "governance framework"

Build a framework similar to national governance, including:

• Technical Department
• Public Relations Department
• Investment Department
• Governance Department
• Activity Department

Ten Strategic Goals of Polkadot Treasury Governance

1. Support the development of LSDFi and DeFi projects
2. Launch the public chain incentive program in a timely manner.
3. Encourage the development of RWA, Web2.5, and DePIN.
4. Continuously build public goods
5. Establishing a Citizen System
6. Design the long-term plan for Polkadot's Odyssey
7. Let Polkadot become a technology evergreen
8. Let Polkadot become the core of the entire chain
9. Mobilize ecosystem participants to jointly promote and advertise
10. Establish a feedback iteration mechanism

Three areas for improvement

1. Improve inflation: dynamically adjust the inflation rate
2. Improve operations and lower the threshold
3. Improve governance functions

Possible doubts in the plan

1. How to ensure that treasury support does not affect the DOT price?
2. Does the strategy contradict the purpose of decentralization?
3. How to prevent incentives from causing profit transfer?

Conclusion

The development path of Polkadot is full of challenges, but also contains opportunities. We hope to build a stable and development-potential future for Polkadot through active participation and exploration. This requires the joint efforts of the official team and the community, as well as a commitment to the spirit of Web3. Let us remain patient and resilient as we move forward.