Polkadot Q2 2023 Report: Achieved Two Key Milestones, Network Activity Significantly Increased

Key Highlights

• OpenGov is officially launched. This new decentralized governance model introduces parallel voting, community-centered governance institutions, and a more flexible delegation mechanism, enhancing decision-making efficiency and transparency.

• XCM V3 released. The new version of the cross-consensus message format adds advanced programming capabilities, bridging with external networks, cross-chain locking, an optimized fee payment mechanism, and support for NFTs.

• The U.S. Securities and Exchange Commission ( SEC ) has not classified Polkadot's native token DOT as a security. The Web3 Foundation stated that after three years of communication with the SEC, DOT is no longer regarded as a security.

• Acala and Moonbeam have re-leased their parachain slots. The initial lease period for the first batch of parachains is set to expire in October, and competition for the slots is expected to intensify.

Overview of Polkadot

Polkadot is a nominated proof-of-stake ( NPoS ) blockchain network designed to support multiple interconnected application-specific Layer 1 chains, known as parachains. The Polkadot ecosystem includes all the parachains connected to the "relay chain." The relay chain is responsible for the security, governance, and connectivity of the network, and does not support application functionalities.

Key Indicators

• Market Cap: $6.24 billion at the end of the second quarter, a 16% decrease quarter-over-quarter.
• Revenue: $81,000, a decrease of 32% month-on-month
• Staking Rate: 46%, Annualized Staking Yield 16%
• Treasury size: 46.5 million DOT ( 2.4 billion USD )
• Daily active accounts: an average of 5,800, a month-on-month decrease of 16%
• Total number of accounts: 3.9 million, an increase of 200,000 this quarter.

Ecosystem Overview

• XCM V3 released, introducing advanced features such as cross-chain locking and NFT support.
• Main parallel chains: Moonbeam, Acala, Astar, Parallel, etc.
• New parallel chain added this quarter: Moonsama
• Ecological Highlights: Mythical Games plans to migrate Mythical Chain to Polkadot.
  • Kilt collaborates with Deloitte and Polimec to issue KYC certificates
• Composable Finance releases the Centauri IBC bridge test version
• Energy Web plans to launch a Polkadot parachain

Roadmap Progress

• Completed: Collectives Parachain, Nomination Pool, Staking Dashboard, OpenGov, XCM V3, etc.
• To be implemented: more system parallel chains, asynchronous support, parallel threads, etc.

Overview of Decentralization and Staking

• The number of active validators remains at 297.
• The staking rate is approximately 46%, equivalent to 607 million DOT.
• OpenGov governance model launched, improving decision-making efficiency

Conclusion

Polkadot made significant progress in the second quarter, particularly with the release of OpenGov and XCM V3. The network's fundamentals remain strong, with a significant increase in parachain activity. Looking ahead, as more features are implemented, Polkadot is expected to further enhance its performance and interoperability.