1. Acala

80% of transaction fees have been burned, but a new burning mechanism has been introduced

Acala is a financial services platform built on the Polkadot network, specifically providing a liquidity hub for the Polkadot ecosystem and aimed at promoting financial innovation. It provides important financial functions such as lending and stablecoins to the Polkadot ecosystem. Acala can be considered the DeFi (decentralized finance) hub of Polkadot as it is the first DeFi protocol developed through the Polkadot parachain auction, providing a powerful financial infrastructure for the entire system. Ecological.

Acala launched its Acala 2.0 plan in September 2023, introducing the AcalaStake and Exodus network upgrades and updating and improving the token economy.

ACA is the governance token of Acala, which officially launched the Acala Stake program through a referendum on October 16, 2023. This program aims to set a target annual interest rate (APR). is 10% for ACA take and encourages community members to actively participate in take to promote ecosystem security and governance.

Additionally, Acala has established new regulations regarding token issuance and burning to create a more balanced ecosystem. Under the new rules, a total of 100 million ACA will be issued annually, with 50% of the amount used to take ACA, while the remaining 50% will be used to help build liquidity and promote adoption. used in the ecosystem. Additionally, the network periodically burns a portion of unused ACA issuance, e.g., 1% per month, and a portion of accumulated network fees, e.g., 20% through governance. The goal of these measures is to strengthen the ACA's scarcity and value proposition, hopefully enhancing its value over time.

Acala's continuous development and improvement provides the Polkadot ecosystem with a robust financial infrastructure, providing users and developers with more financial tools and opportunities. It plays a key role in driving the decentralized finance revolution and is expected to continue contributing to the prosperity and innovation of the entire ecosystem.

2. Astar Network

Create a multi-chain smart contract platform that supports multiple L1 blockchains and multiple smart contract engines

Astar Network is a Parallel Chain built on Polkadot. This is a multi-chain smart contract project. Its predecessor was PALSM and was developed based on the Substrate technology framework. Astar's goal is to become a multi-chain smart contract platform designed to support multiple L1 blockchains and multiple smart contract engines. Developers can build various applications on Astar Network without worrying about scalability and interoperability issues.

Recently, the Astar project entered a new phase and launched the Stake burning mechanism of Astar Tokenomics 2.0. Currently, the Astar network has burned 80% of transaction fees but has introduced a new burning mechanism, which is burning DApp Stake.

Specifically, the DApp Stake burning mechanism classifies projects based on their value to the Astar network. This means that as the value of the Astar ecosystem increases, projects that receive community support will receive more rewards. This mechanism encourages excellent developers to actively participate and gives them greater incentives. However, it is important to note that each level has a limited number of empty slots, and if certain slots are not filled, the bonuses normally given to those slots will be permanently canceled. This means unused rewards will be burned, helping to maintain a healthy ecosystem of the Astar network.

Sota Watanabe, founder of Astar Network revealed that 2/3 of the work on building the STR 2.0 token economic model has been completed and the remaining 1/3 is expected to be delivered by the end of this year. Once the new token economic model is activated, ASTR's inflation rate will be halved and the network will also introduce a new DApp Stake mechanism. These measures are expected to vitalize the long-term development of Astar Network and promote the prosperity of the ecosystem. These changes will help ensure that Astar Network continues to grow and deliver innovative financial solutions within the Polkadot ecosystem.

The DePin project occupies an important position in the Polkadot ecosystem and a series of innovations deserve attention

Recently, the market is buzzing about a series of DePin projects. The Polkadot ecosystem's DePin project has its own advantages and prospects. The DePin project refers to a decentralized hardware network project, which typically includes the construction of a blockchain network and a hardware device network. For hardware device networks, a special consensus mechanism is often needed to evaluate participants' support for the hardware network and allocate rewards accordingly.

Among the existing chain development tools, such as Polkadot's Substrate framework, Cosmos's Cosmos SDK, OP Stack, and other Layer-2 chain development tools, the Substrate framework is one of the only tools that can provides the most comprehensive and customizable chain development tools. It does not limit developers to apply specific consensus mechanisms, allowing developers to use custom consensus mechanisms and quickly build a blockchain. This feature fits the needs of the DePin project very well. Therefore, the Polkadot ecosystem may spontaneously spawn more DePin projects. Compared to other multi-chain ecosystems, the Polkadot ecosystem has greater potential in this field.

Here are some DePin projects that have attracted a lot of attention in the Polkadot ecosystem:

Bittensor: Drives collaborative training of machine learning models in distributed environments

Bittensor is an open source protocol that supports decentralized blockchain-based machine learning networks. The project aims to facilitate collaborative training of machine learning models in distributed environments, with rewards distributed based on the information value they provide to the entire network. Bittensor's goal is to accelerate the development of artificial intelligence through an incentivized iterative ecosystem, enable model interoperability and information sharing, and advance the approach Collaborative, more equitable ownership and access control. The project's vision is to create a fully decentralized artificial intelligence marketplace, providing an open, trustless environment for producers and consumers of valuable goods.

Deeper Network: privacy and cybersecurity infrastructure project based on blockchain technology

Deeper Network is a privacy and cybersecurity infrastructure project based on blockchain technology, aiming to provide users with a freer, safer, and more private way to connect to the Internet. The project uses blockchain protocols, advanced network security technology and the Substrate development framework to create a solid foundation for the development of the future Web3.0 and Internet ecosystem. Deeper Network's core technologies include AtomOS (lockless network security operating system), Trident Protocol (decentralized communication protocol), and NPoW (next generation proof-of-work mechanism). The project has also launched hardware products such as Deeper Connect, the world's first blockchain-based home network security hardware designed to enable decentralized private networks and bypass network censorship.

The emergence of these DePin projects brings new opportunities and prospects for the development of the Polkadot ecosystem, while also bringing innovation and the possibility of developing decentralized networks and hardware devices central. They will continue to drive the growth of the Polkadot ecosystem and provide users with more choices and security. The successful development of these projects will help the Polkadot ecosystem take a more important position in the field of decentralized networks.

Is there an updated narrative on the cross-chain ecosystem in 2024? Let's take a look at the series of technical works of the Polkadot ecosystem

The Polkadot ecosystem is ushering in an exciting time of development. From the increase in network transaction volume to emerging DePin projects, the vitality and innovation potential of the Polkadot ecosystem cannot be ignored. During the course of the year, we witnessed a series of important milestones such as the founding of DotLake, the release of Polkadot 1.0, and the launch of USDC, which have laid a solid foundation for the prosperity of the Polkadot ecosystem.

The upcoming Polkadot 2.0 version heralds major changes, which will lower the threshold for developers and further stimulate ecological vitality. Projects such as Moonbeam, Acala, and Astar Network demonstrate Polkadot's ecological diversity and innovation, and provide a variety of solutions for different sectors. At the same time, the emergence of the DePin project brings new perspectives on cybersecurity and decentralized hardware devices.

In short, the future of the Polkadot ecosystem is full of opportunities and challenges. We look forward to seeing more exciting projects and developments. We also hope that the ecosystem can continue to maintain a neutral and open attitude, and provide more possibilities for innovation and global cooperation. The overall trend of the Polkadot ecosystem is becoming increasingly clear, and we will pay attention to its future development.

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