Treasury

The Polkadot Treasury is a fund of DOT tokens collected from transaction fees, slashing penalties, staking inefficiencies, and burned DOT. DOT holders can propose funding projects or reward completed work that benefits the network.

Purpose of the Treasury

The Treasury is designed to:

• Fund network upgrades and development initiatives
• Support community projects that benefit the Polkadot ecosystem
• Provide grants for tools, dApps, and services
• Cover bug bounties or protocol improvements

Source of Treasury Funds

The Treasury accumulates DOT through:

• A portion of the fees are from transactions on the network.
• Slashing penalties from misbehaving validators
• Staking inefficiencies such as unallocated staking rewards
• Certain operations that remove DOT from circulation

How It Works

Treasury funds can be allocated via onchain governance in three ways: proposals, bounties, and tips. Learn more here.

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