Blockchain
Polkadot’s Multi-Million Dollar Marketing Spending Sparks Blockchain Community Outrage
Blockchain project Polkadot is under fire after disclosing $37 million in marketing spending, sparking criticism and scrutiny from its community.
Polka dota fragmented multi-chain network founded by Ethereum co-founder Gavin Wood, is facing backlash after disclosing $37 million in marketing expenses, sparking criticism and scrutiny from its community.
In its first half of 2024 treasury reportPolkadot said it spent nearly $40 million on “outreach,” saying that by “outreach” the company describes “any expenditure aimed at attracting new users, developers, and businesses into the ecosystem.”
“This ranges from advertising and media, to community building and online and offline events, to large conferences and business development.”
Polka dot
Of the total marketing budget, over $20 million was allocated to advertising, while $10 million of DOT tokens were used for sponsorships. These sponsorships included sports deals, a partnership with a race car driver, and a partnership with an e-sports tournament organizer. For comparison, the report noted that Polkadot spent $23 million on development in the first half of the year.
Polkadot Treasury Report for H1 2024 | Source: Polkadot
The marketing expenditures quickly sparked outrage in the blockchain community, with accusations of centralization and frivolous financial campaigns. Victor Ji, co-founder of Manta Network, expressed his dissatisfaction in a thread Xcalling Polkadot a “highly toxic ecosystem that brings no real value to web3” and accusing it of discrimination and lack of support for network-based projects.
A concrete example is the Polkadot Academy event in Hong Kong this February, where less than a quarter of the attendees were Asian, despite it being an event in Asia (and costing over a million dollars). It was at this event that I first met Gavin Wood, and when… Italian: https://t.co/JxyvyIM6S9
— victorji.eth ✨ (@victorJi15) July 2, 2024
Another Polkadot core developer, who uses the alias @seunlanlege, is also criticized the project’s approach, saying that “it’s insane to me how much money the Polkadot treasury is wasting on misplaced marketing” and drawing parallels between Polkadot and the failed cryptocurrency exchange FTX.
The report noted that at the current rate of spending, Polkadot’s treasury has about “two years of headroom,” while acknowledging the unpredictable nature of cryptocurrency-denominated treasuries. Gavin Wood has not yet made any public statements on the matter.