Concerns were recently raised in the community following a Treasury report that suggested the project's ongoing costs would only last for two years. However, some stakeholders disagreed with these statements, pointing out that Polkadot's treasury is constantly being replenished by inflation of the network's tokens.
CEO Giotto noted that Polkadot's treasury was initially zero and began to slowly fill up due to inflation. At the same time, part of the funds is spent, but the treasury continues to grow.
According to Giotto, the genius of Polkadot is that inflation is divided in two: part goes to the people ensuring the security of the network, and part goes to the treasury.
Giotto also emphasized that the treasury operates as a DAO (decentralized autonomous organization), where token holders vote on various proposals related to marketing, sponsoring business development and paying for the development of tools like Block Explorer.
Meanwhile, Filippo Francini, a technical educator at Polkadot's Web3 fund, added that the Treasury owns less than 2% of DOT's supply. He assured that the network will continue to function even if the treasury is emptied. However, Filippo expressed confidence that the Treasury will not run out of funds.
I don't think the treasury will be empty anytime soon as it is a security resource. The Treasury is diversifying funds into stablecoins, and directing a fixed portion of point inflation to the Treasury is already being considered.
Filippo Franchini
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