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

Main Highlights

• OpenGov officially launched. Polkadot's new decentralized governance model OpenGov introduces parallel voting, community-centric governance institutions, and a more flexible delegation mechanism, making the decision-making process more efficient and transparent.

• XCM V3 officially released. This new version message format adds advanced programming capabilities, bridging with external networks, cross-chain locking, improved fee payment mechanisms, and support for NFTs.

• The United States 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 dialogue with the SEC, DOT is no longer considered a security.

• Acala and Moonbeam have re-leased parallel chain slots, with the initial leases for the first batch of parallel chains set to expire in October. As new projects seek to join and existing projects renew, competition for parallel chain slots will intensify.

Introduction to Polkadot

Polkadot is a nominated proof-of-stake ( NPoS ) blockchain network designed to support various interconnected, specialized Layer 1 chains known as parachains. Each chain in the Polkadot ecosystem uses the blockchain framework Substrate developed by Parity Technologies, allowing developers to choose the components best suited for their specific application chain. Polkadot refers to the entire ecosystem composed of all parachains connected to the "relay chain." The relay chain does not support application functions but instead hosts all validators, responsible for the security, governance, and interconnectivity of parachains.

Key Indicators

• Market Cap: $62.4 billion, down 16% month-on-month
• Income: $81,000, a month-on-month decrease of 32%
• Staking Rate: 46%
• Annualized staking yield: 16%( Actual yield 9%)
• Treasury Size: 46.5 million DOT ( approximately 240 million USD )
• Daily Active Accounts: 5,800, a decrease of 16% month-on-month.
• Total accounts: 3.9 million, 200,000 new added this quarter
• Number of developers: over 750 full-time developers, totaling 2000 developers

Ecosystem Overview

• XCM V3 released, introducing advanced programming capabilities, external network bridging, cross-chain locking, and other new features.
• The number of active XCM channels increased from 111 to 155.
• Moonbeam and Nodle lead in daily active users among parachains.
• Moonbeam, Acala, Astar, and Parallel's TVL leads other parachains.
• Three new parallel chains added this quarter, two of which are renewals of (Acala and Moonbeam).
• Pledged 467,000 DOT for parachain slot auctions, a 43% increase compared to the previous quarter.

Overview of Decentralization and Staking

• The number of active validators remains at 297.
• 97% of the validators have a staking amount between 1.6 to 2.2 million DOT.
• The staking rate is 46%, slightly below the ideal level.
• OpenGov officially launched, introducing a new governance model.

Summary

Polkadot made significant progress in the second quarter, achieving two major milestones: OpenGov and XCM V3. The network fundamentals remain strong, with a noticeable increase in parachain activity levels. As the first batch of parachain leases is about to expire, competition for slots will intensify. The implementation of future system parachains, asynchronous support, and other features will further enhance network performance. Polkadot has one of the largest developer communities in the industry, demonstrating its ability to deliver according to the roadmap.