- The Chinese community of Polkadot announced it could be shuttering soon as it has been out of operation since September.
- PolkaWorld blamed the protocol’s new governance system, OpenGov, which has made treasury management rather inefficient.
- The community represents nearly 4.8% of all DOT holders, which could have a considerable impact on Polkadot price if they cease operations.
While it may seem like the bear market seems to be making a dent in the crypto space, in the case of Polkadot, it is its own people that are causing potential harm. The new governance has left Polkadot’s largest Chinese community virtually on the verge of coming to an end.
Polkadot to lose its Chinese followers
PolkaWorld, the largest Chinese community of Polkadot with over 50,000 followers, recently announced that it could be ceasing operations. The decision came in light of the response it received from the community regarding its proposal. Last month, PolkaWorld floated a proposal applying for operation costs for the next three months.
#116 PolkaWorld Ops & Maintenance proposal: 2023.9 – 2023.11
PolkaWorld, Founded in June 2019, @polkaworld_org has been around for four years now, is the Polkadot community in China and has gathered more than 50,000 followers
Recently, a proposal requested by… pic.twitter.com/KZ9T6xIbRE
— Polkadot Insider (@PolkadotInsider) August 20, 2023
This proposal was rejected by the community, which resulted in PokaWorld halting its operations since the beginning of September. The past two weeks have been the first time in four years that PolkaWorld has had to resort to a halt since its launch in 2019. Blaming the new governance mechanism of Polkadot, OpenGov, the community stated,
“In the original governance system, a “professional” council was elected by DOT holders. This council had expertise in certain areas and would use their knowledge to evaluate proposals. I think this approach shouldn’t be scrapped, it should be integrated into the OpenGov system. Personally, we believe decentralization only works for the “informed”, it’s not for everyone, no offense meant.
PolkaWorld, in a series of tweets on X (formerly Twitter), called out the Polkadot community for not playing their part properly. The tweet read that the purpose of OpenGov, as per Polkadot founder Gavin Wood, was to make the governance process more decentralized and democratic while also making the Treasury more efficient and transparent. However, as per PolkaWorld, the treasury management at the moment is highly inefficient, affecting long-term contributors and organizations.
PolkaWorld further tweeted,
“All DOT holders need to realize that the Treasury exists to empower and enrich the ecosystem. If OpenGov results in the loss of talented teams, then we might be making a mistake.
Nevertheless, PolkaWorld stated that it would be giving the proposal another shot by updating it and requesting the community to cast their votes genuinely.
PolkaWorld’s exit could prove to be harmful
Given that PolkaWorld has over 50,000 followers and has contributed significantly towards the growth of the network over the past few years, their exit would leave a gaping hole in the community.
Since Polkadot has over 1.13 million users at the moment, PolkaWorld followers amount to more than 4.8% of the entire community. Naturally, the sudden pullback of such a huge figure could have a negative impact on Polkadot price, too.
Polkadot total holders
Thus, DOT holders are equally vulnerable to losses as PolkaWorld should they reject the updated proposal again.
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