Polkadot, a network of sharded multi-chains founded by Ethereum co-founder Gavin Wood, is facing criticism and scrutiny from its community after revealing $37 million in marketing expenses. The disclosure was made in the H1 2024 treasury report, where Polkadot stated that nearly $40 million was spent on “outreach,” which includes attracting new users, developers, and businesses into the ecosystem.
Of the total marketing budget, over $20 million was allocated to advertising, and $10 million worth of DOT tokens were used for sponsorships, including sports deals, collaborations with a race car driver, and a partnership with an e-sports tournament organizer. In comparison, only $23 million was spent on developments in the first half of the year.
These revelations sparked outrage within the blockchain community, with accusations of centralization and excessive financial campaigns. Victor Ji, co-founder of Manta Network, took to an X thread to express his dissatisfaction, calling Polkadot a “highly toxic ecosystem that lacks any real value for web3,” and accusing it of discrimination and lack of support for network-built projects.
Another core developer at Polkadot, using the alias @seunlanlege, also criticized the project’s approach, stating that it is “insane to me how much money the Polkadot treasury is wasting on misplaced marketing,” and drawing comparisons between Polkadot and the bankrupt FTX crypto exchange.
The report acknowledged that at the current spending rate, Polkadot’s treasury has about “two years of runway left,” but also noted the unpredictable nature of crypto-denominated treasuries. As of now, Gavin Wood has not made any public statements on the matter.
Read more: Polkadot’s Gavin Wood introduces new JAM chain graypaper at Token2049.