According to Messari, Polkadot, a blockchain network designed to support interconnected, application-specific Layer-1 chain, has made significant progress in Q2 2023. The network launched OpenGov, a fully-decentralized governance model, and XCM V3, a new iteration of the messaging format, both of which are expected to enhance the network’s functionality and interoperability.
OpenGov introduces concurrent referenda, community-centered governance bodies, and enhanced delegation flexibility, enabling a more efficient and transparent decision-making process. The new governance model replaces the Council and Technical Committee with the Fellowship, a developer DAO that ensures decentralization through community voting and checks and balances. This shift reflects Polkadot’s commitment to a more democratic and efficient decision-making process.
The launch of XCM V3 has generated significant excitement in the Polkadot community. The new version introduces advanced programmability, bridging capabilities with external networks, cross-chain locking, improved fee payment mechanisms, and support for non-fungible tokens (NFTs). This upgrade is expected to pave the way for increased functionality and interoperability across the Polkadot network.
Polkadot’s native token, DOT, was not flagged by the SEC as a security. This follows the Web3 Foundation’s statement that DOT had morphed and was no longer deemed a security after three years of discussions with the SEC. This omission from the SEC’s list of securities is a significant milestone for Polkadot, providing a level of regulatory clarity for the network and its users.
The network also saw Acala and Moonbeam re-lease their parachain slots, indicating increased competition for slots as new projects seek to join and existing projects aim to re-sign. The first batch of parachain leases is set to expire in October, which is expected to intensify the competition for parachain slots.
Polkadot’s market capitalization experienced a 16% decrease QoQ, declining from $7.74 billion to $6.24 billion. Despite this, Polkadot ranked as the 12th largest crypto project by market cap and the fourth largest base layer protocol, following Ethereum, Cardano, and Solana.
Looking ahead, Polkadot plans to implement additional system parachains, asynchronous backing, and parathreads, which will further enhance the network’s functionalities, scalability, and interoperability. With one of the largest developer communities in the crypto space, Polkadot is well-positioned to continue delivering on its roadmap and shipping products.