Inflation is too high, which stops new people from joining. A solution is to have a fixed supply and use a certain percentage of what's left as inflation. The total maximum supply could be 2.1 billion, which is related to Bitcoin. If we have 1.4 billion tokens now, that means we have 700 million left to use as rewards. A good number for inflation could be 10% of what's left. So, in the first year, the staking rewards distributed will be 70 million (10% of what's left). In the next year, only 63 million will be distributed because only 630 million will be left. This way, we never run out of tokens, and the amount distributed always gets less. This might make Polkadot more appealing to people.

Rejected

wish_for_change

The inflation is currently excessive and this turns off a lot of potential new entrants A good solution could be to have a fixed supply and then use as inflation a certain percentage of whatever is left I suggest using as total maximum supply 2.1 billions because it's a funny number and it's related to Bitcoin Let's assume at the moment we have 1.4 billion tokens, that means that we have 700 million left to use as rewards I think a good number for inflation could be 10% of whatever is left, so on the first year the staking rewards distributed will be 70 millions (10% of what is left) and then on the next year because only 630 millions will be left only 63 million will be distributed, etc. So we never run out of tokens because the amount distributed always get less and less but we have an absolute total cap and this probably make polkadot more appealing for a lot of people Details: https://x.com/giottodf/status/1783009866631811341

WHO: Proposal author

WHAT: Proposing a fixed supply and using a certain percentage of leftover tokens as inflation for staking rewards in Polkadot

PRICE/TIMEFRAME/RESOURCES: Not specified

Reducing inflation - VOTE NAY

- **Current Spending Periods**: Currently set at 24 days, these periods cause delays in funding.
- **Referendum Process**: It takes up to 28 days for a referendum to pass.
- **Confirmation Time**: An additional 7 days are needed for confirmation.
- **Cumulative Delay**: If confirmation ends on the first day of a new spending period, another 24 days are required, totaling up to 2 months.
- **Arbitrary Duration**: The 24-day period is considered arbitrary and problematic.
- **Proposal for Change**: Suggest reducing the spending period to the shortest possible time, ideally one day or one week if technically feasible.
- **Purpose of Change**: The shorter the period, the less uncertainty and quicker the funding process.

Executed

Proposal: **Reduce spending period to shortest possible time, ideally 1 day, or max 1 week, to avoid 2-month wait for funds.** Current 24-day period causes unnecessary uncertainty. Timeframe/resources not specified.

Reducing duration of spending periods

- The Polkadot EVM Collective is a group that works on everything related to EVM (Ethereum Virtual Machine) on Polkadot.
- It has four main goals: standardizing EVM changes, making development transparent, creating a roadmap, and providing expert advice.
- Members are ranked as Junior or Senior, and their roles define their responsibilities, like maintaining projects or editing documents.
- The collective uses a flat ranking system, meaning ranks only affect voting power, not other benefits.
- Members must stay active by participating in regular checks, or they lose voting rights and roles.
- The collective plans to have its own salary and treasury system, but funding will be decided by Polkadot referendums.
- Small collectives are preferred over one big group because they are faster, clearer, and easier to manage.

WHO: Polkadot EVM Collective
WHAT: On-chain technical collective for EVM standardization, development and maintenance, creating an inclusive roadmap, and providing expert opinions
PRICE/TIMEFRAME/RESOURCES: Salary and sub-treasury system for future use with values set to 0, any increase or funding only done through Polkadot referendums. Inactivity check utilized to ensure active members, with ranks and roles defining voting power and responsibilities. Seeding members subject to final vote of a root referendum. Small collectives deemed more effective for carrying out tasks. Flat ranking system with two ranks and separate concept of roles to define responsibilities.

Approve the Polkadot EVM Collective

- Encode Club is sharing a plan for 2024 to help the Polkadot ecosystem grow.
- They have 3 years of experience and want to attract new developers and support current ones.
- Their past successes include hackathons, workshops, and helping projects get funding.
- The 2024 plan includes educational programs, hackathons, and events to support talent.
- They are asking for $385,000 in funding, split into three parts over six months.
- More details about their past work and future plans are in their proposal and presentation.
- They are excited to continue working with the Polkadot community to make a big impact.

medium_spender

WHO: Encode Club
WHAT: Introducing a comprehensive year-long programme designed to attract new developers, support the current ones, guide mature projects towards creating significant startups and foster new talent in the ecosystem.
PRICE/TIMEFRAME/RESOURCES: Requesting funding of $385k split across 3 tranches of $128,333 in DOT (17,898.60 DOT based on Subscan MA of 7.17) immediately (July 2024), after 3 months (October 2024) and after 6 months (January 2025).

Elevating the Polkadot Ecosystem: Encode x Polkadot Programme 2024 

Delegations are a good idea for some decisions, but not for very important ones. Some tracks, like Root, Wish for Change, and Treasurer, are too important to trust others with. This is because they can change the rules a lot or spend all the money. It's like how you can trust someone to sign a paper for you, but not for big life events like marriage or divorce. We should be careful with who we trust for these important decisions to keep the system safe. This idea is not just for one group, but for all important choices.

I propose not to allow any delegations on the following tracks which should be considered of vital importance: Root track (could completely change the protocol) Wish for change track (could produce deep changes in the protocol) Treasurer track (unlimited spending without any cap, potentially burning the full treasury if the beneficiary address is a burn address) The idea behind delegation is good, it's the concept that for specific actions you do not want to vote yourself but you rather trust a third party. However for things of extreme importance it is risky to trust a third party because of the well-known agent problem Just like in your daily life you can issue a POA for a commercial contract but not for extremely important events like for example marriage / divorce / etc Certain events are so critical that it is important to know that there is no risk that the agent might have a different opinion than the owner This is not specifically targeted at DV (even if of course their role has to be considered) but it's more about the idea that for certain tracks it is perfectly reasonable to do delegations and for others it's not in order to protect the integrity of the system

Proposal: Do not allow delegations on vital tracks (root, wish for change, treasurer) to protect system integrity. Delegation is good but risky for extreme importance. No specific target. No price/timeframe/resources mentioned.

Restrict delegations on root and treasurer tracks

- Some important decisions in a system should not be delegated to others.
- The Root track, Wish for Change track, and Treasurer track are very important and should not be delegated.
- Delegation is good for less important tasks but risky for critical ones.
- Important decisions, like marriage or divorce, should not be handled by someone else.
- This is to protect the system and make sure important decisions are made carefully.
- It’s not about targeting anyone, but about keeping the system safe.

TimedOut

root

Proposal: Do not allow delegations on Root, Wish for Change, and Treasurer tracks due to their vital importance. Trusting a third party for such critical actions is risky. This is not targeted at DV, but rather to protect the system's integrity. No specific price/timeframe/resources mentioned.

error - vote NAY

### BlockDeep Labs Summary

- **Background**: BlockDeep Labs is a spin-off from Parity's solution engineering team, with over 5 years of experience in Substrate-based chain implementation.
- **Grant**: Secured a grant from the Web3 Foundation to deliver the Mythos Parachain.
- **Problem**: New teams in the Polkadot ecosystem lack high-quality support due to the decentralization of Parity's go-to-market functions and the scaling down of the Substrate Builders Program.
- **Proposal**: Expansion of service offerings to foster Polkadot ecosystem growth, including coretime usage-based technical support, Substrate code reviews, Polkadot release analysis, and a delivery partners program.
- **Coretime Usage Support**: Offers free access to engineering resources based on coretime usage, aiming to gamify and educate about coretime concepts.
- **Substrate Code Reviews**: Provides detailed technical feedback and support to builder teams, aiming to maintain high-quality standards in the ecosystem.
- **Polkadot Release Analysis**: Reestablishes detailed analysis of Polkadot releases to enhance visibility of breaking changes.
- **Delivery Partners Program**: Trains and accredits Substrate engineering companies, enhancing Polkadot's visibility and ecosystem support.
- **Team**: Led by Gautam Dhameja, with experienced Substrate engineers and a project manager.
- **Budget**: Requests $577,745 (81,718 DOT) for 6 months to deliver these services.

WHO: BlockDeep Labs, a spin-out of the former solution engineering team at Parity.

WHAT: Proposes to offer technical support and advisory services to Polkadot ecosystem teams, including coretime usage-based support services, Substrate code reviews, Polkadot release analysis, and delivery partners program.

PRICE/TIMEFRAME/RESOURCES: The proposal requests funding of 81,718 DOT for a 6-month period from June 1, 2024, to November 30, 2024, with a total budget of USD 577,745 (including VAT). The budget includes costs for code reviews, release analysis, coretime-based support, on-chain badging system, ecosystem services coordination, and entity management.

BlockDeep Labs: Ecosystem Services Proposal for Polkadot Treasury

- The Polkadot Ecology Research Institute is a group that studies and supports the Polkadot ecosystem, especially in Asia.
- They have been helping Polkadot since 2019 and have received support from the Polkadot treasury 7 times.
- They write articles about Polkadot, which have been read over 60 million times.
- They have helped organize more than 70 Polkadot events and supported over 110 Polkadot projects.
- They also help projects connect with investors and provide free support to global Polkadot projects.
- They are asking for funding to cover their daily costs for the next year.
- They published a detailed report on Polkadot’s future, which is very popular in Asia.
- This is their 8th time asking for funding from the Polkadot treasury.

WHO: Polkadot Ecology Research Institute

WHAT: Applying for 12 months of operational funding for personnel expenses to cover day-to-day operational costs of the institute.

PRICE/TIMEFRAME/RESOURCES: Not specified.

The operating cost for the research organization Polkadot Ecology Research Institute for 2024/4-2025/3

- The proposal is being presented through the treasury instead of the bounty system because the event requires quick decisions and has a lot of preparation work.
- The event, Merge Madrid, is the biggest Web3 event in Spain, attracting 4,000 attendees.
- It will last 3 days: Day 1 is for businesses, and Polkadot will host a VIP dinner. Days 2 and 3 are open to the community.
- Polkadot will have a booth, a presentation, and workshops to explain its benefits in blockchain.
- The event is important for Polkadot to connect with businesses, developers, and the community.
- The Spanish Bounty system can't fund this event because it has a $50,000 limit.
- The full proposal can be found in a linked document.

Polkadot proposes to sponsor and participate in Merge Madrid, the most important Web3 event in Spain, attracting 4000 attendees. The event will span 3 days, and Polkadot will have a 12m2 booth, a 15-minute presentation on the Main Stage, 2 speaker allocations on the main stage, 30 minutes of workshop, a sponsored session on the main stage, and brand visibility at the national and international levels. The proposal is being presented through the treasury due to the complexity of the proposal, the commitment of the team with the event, and the need for a quick response. No specific price, timeframe, or resources are mentioned in the summary.

Sponsorship and Side Event: Merge Madrid

Polkadot Decoded Asia is a big event happening on September 16-17, 2024, in Singapore. It is a part of the Singapore Token 2049 week. The event is for people who are interested in Polkadot and want to learn more about it. It will have many activities like presentations, exhibitions, and social gatherings.

The event is important because it brings people from different countries in Asia together to talk about Polkadot and its growth. It also helps people who cannot travel to Europe for the main event in Brussels, Belgium. The event will be in Chinese and English.

The person who proposed this event is Aitijia'er, a company in China that has organized big Polkadot events before. They asked for $328,053.04 (54,121DOT) to make this event happen.

The event will have many things to do, like listening to people talk about Polkadot, watching demonstrations, and meeting new people. There will also be a job fair for people who want to work with Polkadot.

The event is free for everyone who wants to join, and they will give out free NFTs as proof of attendance. They will also share a report after the event with all the details about what happened.

In summary, Polkadot Decoded Asia is a big event in Singapore for people who want to learn more about Polkadot and meet others who are interested in it too.

Proposal: 2024 Polkadot Decoded Asia (Singapore) September 16 -17 (During the Singapore Token 2049 week)

Please vote NAY

- Polkadot-API is a project to help developers build decentralized apps.
- It’s built on PolkadotJs but aims to do even more.
- The project focuses on making tools that are easy to use and work well with light clients.
- The team recently shared updates and added a new member, @carlosala.
- They are asking for feedback on a funding proposal to keep the project going.
- You can read more about the proposal in a Google Doc.
- The team includes @Josep, @carlosala, and @voliva.

WHO: Polkadot-API development team

WHAT: Seeking financing for maintenance and development of Polkadot-API through treasury proposals

PRICE/TIMEFRAME/RESOURCES: Details in the google doc provided in the post

Polkadot-API: Apr-Jul development financing

- The `pallet_bridge_grandpa` at Polkadot Bridge Hub is in an inconsistent state due to a bug.
- The bug involves how the GRANDPA light-client handles validator set changes after slashing.
- This bug caused Kusama to Polkadot traffic to get stuck.
- An upgrade is being prepared to fix this issue.
- A Polkadot runtime upgrade (to 1.2.0) is already up for a vote.
- The fix will be applied after the runtime upgrade.
- The proposal to fix the bug is on the Whitelisted Caller track.
- A parallel submission is being voted on by the Fellowship to whitelist the proposal.

whitelisted_caller

WHO: Polkadot Bridge Hub

WHAT: Fixing a bug in the Polkadot-GRANDPA-light-client running BH that causes traffic to be stuck between Kusama and Polkadot.

PRICE/TIMEFRAME/RESOURCES: Not specified.

Polkadot Bridge Hub 1.2.2 upgrade: Unstuck bridge with Kusama

### Phala Network Referendum Summary

- **Purpose**: To transfer $PINK tokens from Phala's sovereign account on Polkadot to a sibling account on AssetHub.
- **Background**: Phala received 18,862,885 $PINK tokens from the PINK team, but mistakenly provided the wrong account.
- **Issue**: The sovereign account on AssetHub cannot be controlled directly, so the tokens cannot be moved without a referendum.
- **Solution**: A referendum is needed to move the tokens via XCM from Polkadot.
- **Outcome**: If passed, the tokens will be moved to the correct sibling account.
- **Distribution**: The tokens will be distributed to the Phala community based on a strategy proposed by the community.
- **Community Involvement**: The distribution plan was discussed and approved by the Phala community.
- **Next Steps**: Community members are encouraged to vote on the referendum.

Cancelled

Phala Network proposes a referendum to move $PINK from their sovereign account to their sibling account on AssetHub, to distribute it to their community. The proposal needs a referendum to send an XCM message from Polkadot, and the distribution will follow a strategy proposed by the community.

Proposal for unlocking $PINK from Phala soverign account to sibling account

- A refill of 500k was confirmed yesterday, and another 500k is requested.  
- Marketing bounty funds are empty, and the next spending period is 22 days away.  
- The bounty will run on credit, promising influencers payment later, creating debt.  
- The price of DOT dropped by almost 50% since the last refill.  
- Community feedback shows people prefer transparency over cost savings.  
- Influencers offer discounts if prices are kept private, but the community wants full transparency.  
- Transparency will increase costs by 50% to 100%, but it will show detailed spending.

big_spender

WHO: The person making the proposal
WHAT: Requesting a refill of 500k for marketing bounty
PRICE/TIMEFRAME/RESOURCES: Not specified

Requesting a refill for marketing bounty number #33

treasurer

vote NAY

- G6 Networks helps governments, banks, and companies use blockchain easily.
- They use Polkadot's technology to connect traditional systems with Web3.
- G6 Networks has created special devices to make private blockchains and connect them securely.
- Their technology includes strong security features like Zero-Knowledge protocols.
- They have already worked with Mandala Chain and have agreements in Indonesia and UAE.
- G6 Networks is asking for $244,200 from the Polkadot Treasury to grow their project.
- They were founded by David Pethes and are part of CCTF DAO, a security auditing company.

G6 Networks seeks funding from the Polkadot Treasury to expand and develop their blockchain infrastructure for governments, banks, and enterprises. They have already brought Mandala Chain, Mosaic Chain, and two MOUs to the Polkadot ecosystem. The requested budget is 244,200 USD, and they aim to simplify complex integration processes through their physical G6 devices, which support private, permissioned, and cross-chain functionalities.

G6 Networks: Polkadot Ecosystem Expansion with Institutions

A new proposal called "Business Development Spain & Andorra Curators" has been approved. The goal is to bring more clients from Spain and Andorra into the Polkadot ecosystem. These clients can build a Parachain, develop a Dapp, or create a plug-in through an existing Parachain. Three experienced curators, Nick Dunford, Ezio Rojas, and Ben Sheppard, will help with this project. They will analyze and discuss potential rewards for clients based on the impact and difficulty of their work. The curators will also provide information on rewards and create a report every 2 months about the progress and work done. This proposal was approved on April 19th, 2024.

Approved Proposal: #526 Business Development Spain & Andorra Curators Address: Nick Dunford, 14mbD2ymcPNrDSkKbCzApXqeLjqGHB5punzxuXvxnz8RZSPg Ezio Rojas, 14Gn7SEmCgMX7Ukuppnw5TRjA7pao2HFpuJo39frB42tYLEh Ben Sheppard, 16ad3ehm2XsVQbQgqYPxicRB5nGinQU9zEKiCJ7ZVhRN9CyG Multisig Account: 14D7M2M3YTXXx1Evcz5eDhNmFLR5nH23TjQbjRtTGHENF4jP Pure Proxy Account: 1FEAW1RdiwmGd5kb1fUJ3hA6BigTgm9PLkaPb9CuFzB4bsy Proposed Curator Reward: 10% of total bounty payout. Date: April 19th 2024 Context: This incentive program aims to attract potential clients located in Spain and Andorra to integrate them into the Polkadot ecosystem. We aim for these clients to build a Parachain, develop a Dapp, or create a plug-in through an existing Parachain, thus meeting the specific needs of their use cases. Candidates: Curators are responsible for analyzing, discussing, and establishing the corresponding reward based on the potential impact and evaluating the difficulty associated with execution. This approach allows for precise adjustment of rewards, aligning with the quality and effort involved in each deliverable.For this purpose, we suggest experienced curators with a good knowledge of Business Development Nick Dunford, 14mbD2ymcPNrDSkKbCzApXqeLjqGHB5punzxuXvxnz8RZSPg The Ex Director of Business Development (Ecosystem Growth) at Parity, current Curator on the Brazil BD Bounty, Alumni of Oxford & SydUni. Nick has a vast experience in BD and will provide valuable resources to our Bounty Ezio Rojas, 14Gn7SEmCgMX7Ukuppnw5TRjA7pao2HFpuJo39frB42tYLEh In the Polkadot ecosystem since 2021. Lawyer, former Cointelegraph Editor in Spanish, and Former Community Manager for Latin America and Spain at Parity Technologies. Co-founder of the Caracas Blockchain Week conference. Ben Sheppard, 16ad3ehm2XsVQbQgqYPxicRB5nGinQU9zEKiCJ7ZVhRN9CyG Ben Sheppard has been working in the Web3 space since 2016 and is currently the founder of a fintech company named Silta Finance. He brings a rich background of 15 years in structured finance, collaborating with Multilateral Development Banks (MDBs) and retail banks, including notable institutions such as the World Bank, EBRD, HSBC, and Macquarie. Responsibilities: The general rewards curators will provide information on each child rewarded in Polkassembly with the corresponding links. They will also inform the community and create a report every 2 months. This report will include the maximum DOT budget spent during the last 2 months and all work progress achieved, and work in progress, such as: announcements of partnerships, sectors we are exploring, qualified leads reached The public reports will be available here in the comments section: https://polkadot.polkassembly.io/referenda/526

WHO: Nick Dunford, Ezio Rojas, and Ben Sheppard

WHAT: Business Development in Spain and Andorra to attract potential clients to integrate into Polkadot ecosystem

PRICE/TIMEFRAME/RESOURCES: Curator reward of 10% of total bounty payout; ongoing reporting every 2 months on progress and budget spent.

Curators Candidates - Bounty #40

### Summary of Polkadot Referendum

- **Purpose**: Enables async-backing on Polkadot, allowing parachains to produce blocks faster.
- **Runtime Upgrade**: Activated in Polkadot runtime version 1.2.0.
- **Block Production**: Parachains can choose to produce blocks every 6 seconds instead of 12 seconds.
- **Testing**: Async-backing has been tested on Rococo, Westend, and Kusama.
- **Dependencies**: Requires Polkadot runtime v1.2, which is part of another referendum.
- **Known Issues**: Validators need to upgrade to version 1.8 or higher for smooth operation.
- **Action Needed**: Un-upgraded validators should upgrade to avoid issues.

Polkadot proposes enabling async backing, allowing parachains to produce blocks at a faster rate. This will be enabled with the Polkadot runtime upgrade 1.2.0, and after the referendum, parachains can decide to produce blocks at a 6s rate. No critical issues are known, but validators need to upgrade to a version higher than v1.8. Whitelisted by the Subsquare fellowship, testing has been done on Rococo, Westend, and Kusama.

Enable async backing on polkadot

Avata is a company that wants to work with Polkadot, a big network for digital money. They want to help protect digital and real-world things using new ways to reduce risks. Avata was started by Sung Feng and Joachim and helps insurance companies work with stores.

Avata wants to work with Polkadot because they can use its special features, like working well with other networks. They have talked to important people in the Polkadot community and even signed a paper saying they want to work together.

Avata works with many big companies like Vaultik, Valentino, Bulgari, Fura Gems, AIG Esport insurance, GamerPay, and Vaultn. These companies make a lot of money online and can use Avata's help to keep their money safe.

Avata also wants to use something called Digital Product Passports (DPP) to make things better on the internet. DPPs help people know more about the things they buy, like where they come from and how they are made. This can help businesses follow new rules from the government.

Avata thinks Polkadot is a good place to use DPPs because it can work well with many different things. This can help make the internet better and safer for everyone.

By working with Polkadot, Avata hopes to make better insurance for digital things, help the market grow, and make new insurance products. They also want to help businesses follow new rules and make more money.

Avata has a system that helps different people do their jobs, like a place for bosses to manage things, stores to work with Avata, customers to use their services, and partners to see how things are going.

Avata is excited to work with Polkadot and make the internet a better place.

### **Introduction**

We at Avata, a leading innovator in insuring digital and tokenized real-world assets, are submitting a proposal to secure a grant for integrating our platform with the Polkadot ecosystem. Founded by Sung Feng and Joachim, Avata has become instrumental in bridging insurance carriers with merchants via a plug-and-play platform, aiming to safeguard the digital economy. Our mission leverages novel risk mitigation strategies pertinent to both Web2 and Web3 sectors.

### **Connection to Polkadot Community**

Joachim, our co-founder, boasts profound connections within the Polkadot community, having fostered key relationships over time. A meaningful interaction with Strindbergman from ChaosDAO during the Paris Blockchain Week has reinforced our commitment to utilize Polkadot’s distinct capabilities, such as scalability and seamless interfacing with parachains, aligning with client demands and our strategic objectives. In October 2023 we engaged with Parity Technologies, signing an NDA/LOI to deploy on Polkadot. At that time our platform was not fully developed and ready for deployment. This is why we are presenting our proposal now, as our platform is live with merchants and ready for delpoyment.

### **Partnering with Polkadot**

Our partnership with Polkadot is set to enhance the blockchain ecosystem by bringing onboard significant players from various industries who’s already collaborating with Avata and we are live with, each contributing substantial digital revenue streams that can transition to on-chain transactions.

Here are some highlights of our key partners and the economic impact they are poised to bring:

**Vaultik:** protects and connects luxury goods through digital vaults. With embedded insurance on Vaultik has a projected annual digital value of $300M and over 60+ merchants.

**Valentino:** A luxury brand with a strong digital presence, Valentino's online sales contribute approximately $500 million annually.

**Bulgari:** A renowned Italian luxury brand known for its exquisite jewelry, watches, fragrances, accessories, and leather goods. $100M+ in DPP sales.

**Fura Gems:** Global mining pioneers of colored gemstones. Supplying Cartier, Bulgari, Rolex and more with gemstones. $80M+ in DPP sales

**AIG Esport insurance:** Working already with the most prominent esports teams, organisers, federations and platforms to facilitate esport, cancellation and event liability insurance. Combined value of over $600M+.

**GamerPay:** A digital marketplace platform for the gaming industry, GamerPay handles around 215 million in trades annually.

**Vaultn:** Smart distribution platform enables direct, secure, and on-demand transactions for game keys and activations. Offers opt-in insurance from Indie to AAA with clients like Bethesda, Fanatical, Thunderful Group, Maximum Games, Nuuvem, etc. Combined value of $1B+.

Partnership deals with **EON,** **Arianee** and **Trust Place** with clients like Chanel, Dior and Nike.

Our platform boasts over 100 prospects and live clients representing the most innovative marketplaces, gaming-skin trading platforms, luxury brands, and the NFT industry. These clients already account for several millions of transactions on an annual basis.

![](https://i.postimg.cc/L54tKjnS/Merchants-insurers-partners.png)

### **Introduction of DPP Providers to the Polkadot Ecosystem**

Avata stands at the forefront of incorporating Digital Product Passport (DPP) providers into the blockchain arena. These DPPs, set to be promoted by upcoming EU regulations, are designed to enhance transparency and management throughout a product’s lifecycle. They act as digital twins, detailing everything from production to disposal, facilitating improved regulatory adherence, sustainability, and management.

We are thrilled to share that Avata has already garnered commitments from numerous DPP providers ready to integrate with the Polkadot parachain network. This move will not only extend the applications of DPPs in blockchain but also position both Avata and Polkadot at the cutting edge of regulatory evolution.

### **Market Dynamics and Security Insights**

The digital asset market is currently undergoing explosive growth, highlighted by an increase in Total Value Locked (TVL) in DeFi protocols and the proliferation of tokenized assets. This growth trajectory is tempered by substantial security challenges: A notable $10 billion in assets were compromised due to security breaches last year, highlighting the urgent need for comprehensive insurance solutions. The market for digital and tokenized assets is expected to burgeon to over $24 trillion by 2027, underlining the vast potential and the essential need for robust protective mechanisms.

![](https://i.postimg.cc/FF6kGtNG/digital-and-tokenized.png)

![](https://i.postimg.cc/J0jyGnvn/Blue-ocean.png)

### **Why Polkadot is the Ideal Platform for DPP Integration**

Polkadot’s architecture, known for its scalability and interoperability, provides an optimal foundation for the deployment of DPPs across various sectors. By leveraging Polkadot, Avata aims to:

-   **Enhance Transparency:** DPPs on blockchain will offer unmatched insight into product lifecycles, enabling both consumers and businesses to make more informed decisions.
-   **Boost Sustainability:** DPPs will facilitate greener choices by providing detailed sustainability and environmental impact data.
-   **Facilitate Compliance:** The evolving EU regulations will be more easily navigable through blockchain-enabled DPPs, simplifying adaptation for businesses.

### **Anticipated Outcomes with Polkadot Integration**

Our integration is set to yield substantial advancements, including:

-   **Targeted Insurance Solutions:** Addressing the dire security concerns manifested in the theft of over $10 billion in assets.
-   **Market Expansion:** Responding to the market’s potential expansion to $24 trillion by 2027, providing a secure foundation for digital asset transactions.
-   Innovative Insurance Products: Merging our insurance offerings with DPPs to create new, customized products tailored for the digital and tokenized asset market.
-   **Wider Market Access:** Bridging digital assets with real-world applications, broadening our audience and market share.
-   **Regulatory Leadership:** Establishing benchmarks for regulatory compliance in the blockchain realm, particularly with the impending EU DPP regulations.
-   **Annual Projections:** We are projecting to insure over 70 million DOTS annually in terms of insurance policies and claim payouts, with plans to continue growing the business moving forward

### **Comprehensive Plug and Play Solution Offered by Avata**

Our product is multifaceted, addressing the needs of various stakeholders through different portals:

-   **Avata Admin Portal:** A many-to-many switchboard with a dynamic pricing engine, setup configuration for merchant-partner relations, and data aggregation for transaction oversight.
-   **Merchant Portal:** Offers performance analytics, API or SDK integration, and pricing options, including a white-label portal for claim filings.
-   **Customer Portal:** Web2 and Web3 user-friendly interface, with policy management and cross-sell opportunities.
-   **Partner Portal:** Provides detailed transaction reports, A/B testing for pricing, and a comprehensive market risk overview.

![](https://i.postimg.cc/j5352fMt/Plug-Play.png)

### **Closing Thoughts**

Avata's clear vision, combined with Polkadot's advanced technology and our preparation for the upcoming EU regulations on DPPs, puts us in a strong position to make a significant impact on the Polkadot ecosystem and the wider digital economy. We're excited about this transformative journey and hope you'll join us in creating a more transparent, sustainable, and compliant digital landscape.

Read more about Avata — [avata.gg](avata.gg "avata.gg") 

Breakdown of Grant Budget — [https://docs.google.com/spreadsheets/d/e/2PACX-1vQPzGLnjfFhVgc8mmhI3vojuKRQLK-E5R2l1UIGXCovxyKg7BNgYJt9UvPlp\_894g/pubhtml](https://docs.google.com/spreadsheets/d/e/2PACX-1vQPzGLnjfFhVgc8mmhI3vojuKRQLK-E5R2l1UIGXCovxyKg7BNgYJt9UvPlp_894g/pubhtml)

Avata proposes to integrate their platform with Polkadot ecosystem to insure digital and tokenized real-world assets. They have live clients and partners with projected annual digital value of over $2B. Avata aims to enhance transparency, boost sustainability, and facilitate compliance. They project to insure over 70 million DOTS annually and offer a comprehensive plug-and-play solution. They are requesting a grant of $2.5M to be used over 18 months.

 Integration of Avata with the Polkadot Ecosystem

Klaster.io has proposed integrating its cross-chain protocol into the Polkadot ecosystem to enhance interoperability and user experience. Klaster allows transactions across various blockchains through its network of nodes, simplifying the complex landscape of blockchain transactions. The integration would allow seamless transactions between parachains and external EVM-compatible blockchains, opening up opportunities for dApp development, asset transfer, and efficient governance models. Benefits of Klaster integration include a unified transaction environment, cross-chain gas management, smart accounts with cross-chain functionalities, and enhanced security and efficiency. The technical implementation would involve collaboration between the Klaster team and Parachain teams to ensure compatibility with the Substrate framework. Integrating Klaster into Polkadot would enhance the ecosystem's interoperability, reduce barriers for users and developers, and increase the utility and demand for DOT.

**Leveraging Klaster for Enhanced Cross-Chain Functionality within Polkadot**

Hey all! This is a proposal from the Klaster.io team — cross chain infra that will bring additional value to Polkadot ecosystem!

**  
Abstract:**

This proposal outlines the integration of Klaster, a protocol designed for seamless transaction execution across different blockchains, into the Polkadot ecosystem. Currently, Klaster supports Ethereum Virtual Machine (EVM) compatible blockchains, facilitating transactions across these networks with ease. Expanding Klaster to support Polkadot will significantly enhance interoperability and user experience within the ecosystem, aligning with Polkadot's vision for a fully interoperable and scalable multi-chain network.  
  

**1\. Introduction to Klaster**

Klaster protocol enables transactions across various blockchains through its network of nodes, offering users and developers a unified execution environment. It simplifies the complex landscape of blockchain transactions by introducing multi-chain accounts. These accounts are jointly managed by users and Klaster's nodes, allowing for off-chain transaction signing and on-chain execution without the need for users to directly interact with blockchain complexities such as gas fees and network differences.  
  

**2\. The Need for Cross-Chain Solutions in Polkadot:**

Polkadot's architecture, based on a central Relay Chain and various parachains, inherently supports cross-chain communication and interoperability. However, the current state of cross-chain communication requires improvements in user experience and operational efficiency. Klaster's integration would further enhance these capabilities, allowing seamless transactions not only between parachains but also with external EVM-compatible blockchains. This opens up a myriad of opportunities for dApp development, asset transfer, and more efficient governance models - thereby enriching the Polkadot ecosystem with increased functionality and connectivity.  
  

**3\. Benefits of Klaster Integration:**

1.  **Unified Transaction Environment:**
    -   Users can transact across parachains and external chains using a single wallet interface, significantly improving the user experience.  
          
        
2.  **Cross-Chain Gas Management:**
    -   The integration with Klaster empowers DOT holders by allowing gas fees for transactions on various blockchains, including EVM-compatible ones, to be paid in DOT.  
          
        
3.  **Smart Accounts gain cross chain functionalities**
    -   Klaster empowers smart accounts with the ability to execute transactions not just on their native chains but across multiple blockchain ecosystems.
    -   For example, a smart account can initiate a DeFi swap on Ethereum and settle the transaction on Polkadot, all while managing gas payments in DOT.
    -   This multi-chain functionality significantly enhances the interoperability and efficiency of smart contracts, opening up new possibilities for cross-chain applications and services.  
          
        
4.  **Enhanced Security and Efficiency:**
    -   By leveraging Klaster's intent solvers and multi-chain accounts, transactions become more secure and efficient, reducing the likelihood of failed transactions and enhancing overall network throughput.

  
**4\. Technical Implementation:**

The integration process would involve collaboration between the Klaster team and Parachain teams to ensure compatibility with the Substrate framework. This includes the development of custom pallets for the Relay Chain and parachains, enabling them to interact with Klaster's multi-chain accounts and transaction protocols.

The flow is as follows:  
  

1.  User initiates a trsansaction and requests a quote
2.  Klaster Nodes offer a quote for the transaction execution
3.  Klaster SDK merges Payment & Execution data into an Execution Blob
4.  User signs the Klaster Execution Blob
5.  Klaster Node picks up the Blob and sends the information to —
    1.  Payment Chain Klaster Singleton
    2.  Execution Chain Klaster Singleton
6.  Payment & Executoion Chain Klaster Singleton validates the signature
7.  Upon validating the signature
    1.  Payment Klaster Singleton — transfers paymet to Klaster Node address
    2.  Execution Chain Klaster Singleton — executes transaction on behalf of the user

![](https://i.postimg.cc/QMQN1hyk/1.jpg)

Here's a [quick demo](https://drive.google.com/file/d/1CxeJpatsyX_N4oyTgBgLG6OAF0CZcZ06) of a user connecting to AAVE on Optimism, while paying for the transaction in USDC on Arbitrum. The same effect can be achieved using Polkadot and DOT; or the parachains.

**5\. Potential Challenges and Solutions:**

1.  **Compatibility:**
    -   Ensuring seamless integration with Polkadot's unique architecture. This can be addressed through joint development efforts and leveraging the flexibility of the Substrate framework.  
          
        
2.  **Security**:
    -   Maintaining the high security standards of Polkadot while integrating new functionalities. Continuous auditing and testing, along with the implementation of Klaster's proven security protocols, will mitigate these concerns.

**6\. Klaster brings value to DOT:**

Integrating Klaster into Polkadot will not only enhance the ecosystem's interoperability and efficiency but also directly benefit DOT in several ways.

Klaster allows transaction fees to be sponsored by an agent, enhancing the flexibility and utility of transaction execution within the ecosystem. Integrating Klaster into the Polkadot ecosystem will enhance interoperability and reduce barriers for users and developers interacting across blockchains, including those outside the Polkadot network.

This integration will improve the value proposition of DOT by making the Polkadot ecosystem more accessible and attractive to a broader user base. By connecting Polkadot's ecosystem with EVM-compatible chains, DOT gains increased utility and demand, as users from other chains can seamlessly participate in Polkadot’s DeFi, NFT, and gaming ecosystems without leaving their native platforms. This cross-chain functionality enhances the liquidity and accessibility of DOT, potentially leading to an increase in its value as it becomes a pivotal asset across multiple blockchain ecosystems. This strategic expansion not only strengthens the Polkadot network's position in the market but also underscores the intrinsic value of DOT as a key facilitator of cross-chain transactions and interactions.  
  

**7\. Conclusion:**

Integrating Klaster into Polkadot represents a significant step towards achieving unparalleled interoperability and user experience within the ecosystem. This proposal calls for the support and collaboration of the Polkadot community to bring this vision to reality, paving the way for a more connected and efficient blockchain ecosystem.

  
  
**FAQ:**

1.  **How is Klaster different from blockchain bridges that have existed until now?  
      
    **
    -   Unlike traditional blockchain bridges, which mainly facilitate asset transfers between two distinct chains, Klaster transcends by enabling seamless cross-chain transactions and interactions directly from a user's single smart account. It introduces a holistic approach to blockchain interoperability, integrating cross-chain gas payments and transaction executions without the need for multiple wallets or managing different network tokens, thereby offering a more unified and efficient blockchain experience.  
          
        
    -   Klaster by its nature is not a bridge; it’s an underlying infrastructure that allows for seamless UX. Klaster fundamentally differs from traditional blockchain bridges by focusing on enhancing the user experience through an underlying infrastructure that enables seamless cross-chain interactions, rather than merely transferring assets between chains.

Klaster proposes to integrate its cross-chain protocol into Polkadot, enabling seamless transactions between parachains and EVM-compatible blockchains. This will enhance interoperability, user experience, and security, while empowering DOT holders to pay gas fees for transactions on various blockchains. The integration will require collaboration between Klaster and Parachain teams and will bring value to DOT by making the Polkadot ecosystem more accessible and attractive to a broader user base. The proposal calls for support and collaboration from the Polkadot community.

Proposal for Klaster Integration into the Polkadot Ecosystem

- Distractive Media is asking for $325,000 to help Polkadot with marketing in Q2 2024.
- They are a web3 marketing agency working for Polkadot.
- They have five campaigns planned to highlight Polkadot projects and attract new developers, partners, and community members.
- The campaigns will use Polkadot's main social media accounts, website, and blogs.
- The full plan and costs are in a document linked in the proposal.
- They are looking forward to feedback on their ideas.

**WHO:** Distractive Media

**WHAT:** Q2 Marketing Campaigns for Polkadot ecosystem, including shedding light on projects and onboarding new developers, partners, and community members.

**PRICE/TIMEFRAME/RESOURCES:** $325,000, DOT allocation calculated based on 7-day avg rate. Full cost breakdown in proposal.

Polkadot Q2 Marketing Campaigns by Distractive 

Chainalysis has proposed a collaboration with Polkadot to provide data, analytics, and compliance solutions. This partnership aims to help Polkadot grow its business compliantly within the institutional market. Chainalysis will offer visibility to regulators and authorized institutional prospects of any risky on-chain activity related to the DOT token on the Relay Chain. They will also provide on-chain intelligence to authorized institutional clients to meet their requirements related to the listing of the DOT token. The collaboration will help Polkadot increase its market capitalization, capture a larger market share of institutional market growth, grow adoption on crypto markets, avoid fines and reputational losses, and grow in popularity among institutional clients. The proposal can be found [here](https://docs.google.com/document/d/1UutTTs8k0BkcKxIHn8wdQTJDY0WDHrrHjX_7K_f79qw/edit?usp=sharing).

### Treasury Proposal: Chainalysis x Polkadot

Requested DOT: 1,000,000 DOT

Short description: Project Category/Type: Chainalysis provides data, analytics, and compliance solutions to Polkadot, driving insights that may be helpful for institutional market entry.

Context of the proposal Proposal executive summary: Chainalysis is pleased to collaborate with Polkadot. As the leader in blockchain intelligence, Chainalysis data and software can help Polkadot grow their business compliantly within the institutional market.

Institutional clients fall under the oversight of various global and national regulatory bodies such as the Financial Action Task Force (FATF), the European Securities and Markets Authority (ESMA), and the United States Securities and Exchange Commission (SEC). As guidelines and rules for digital assets evolve and become more definitive, exemplified by frameworks like Markets in Crypto-Assets Regulation (MiCA), entities such as Polkadot need tools and training to ensure regulatory compliance.

For institutional clients, one major requirement before listing a token or building an app is the ability to understand the risk of working with that particular blockchain and be able to monitor and trace its tokens. This includes understanding the level of risk of that ecosystem, determining what controls can help mitigate those risks, and equipping them to fulfill regulatory reporting requirements about investments in its tokens.

Chainalysis is well positioned to provide tooling to Polkadot that helps them enter the institutional market by:

**Providing visibility** to regulators and authorized institutional prospects of any risky on-chain activity related to the DOT token on the Relay Chain

-   A key driver to unlock institutional interest is to ensure good standing with regulatory bodies. This involves taking a risk-based approach and receiving alerts on any risky activity that may be present related to the DOT token on the Relay Chain
    
-   Chainalysis provides the best-in-class data platform when it comes to identifying illicit activity and empowering users to take a risk-based approach
    
-   This is not just about avoiding negative consequences but also about building a reputation as a responsible and law-abiding actor in the digital assets space
    

**Offering on-chain intelligence** to authorized institutional clients to meet their requirements related to the listing of the DOT token, which may be related to Investigations, Compliance or Growth use-cases

**Collaborating with Polkadot** on events, announcements, case studies,, etc that would help spread the word that Chainalysis collaborates with Polkadot and provides compliance software

The Polkadot community intends to leverage Chainalysis software to support the following business goals:

**Increase in market capitalization** of the network through institutional adoption, specifically by including DOT tokens in the portfolios of these large institutions

**Capture a larger market share of institutional** market growth in the crypto assets space – as projected by analysts – either via tokenisation or through the development of applications that uses DOT tokens

**Grow adoption on crypto markets** across the world. As cryptocurrency adoption grows (see our annual Geographies report), Polkadot would like to win a larger stake in the market by positioning its ecosystem one of the safest

**Avoid fines** and reputational losses by providing a safe and transparent ecosystem where institutions and regulators can monitor risks

**Grow in popularity** among institutional clients that are building applications in this ecosystem and driving growth of the developer’s community

In order to achieve these goals, Polkadot needs a blockchain analysis solution to help build trust among regulators, institutional customers and prospects, and developers.

For complete proposal, please refer to the following [link](https://docs.google.com/document/d/1UutTTs8k0BkcKxIHn8wdQTJDY0WDHrrHjX_7K_f79qw/edit?usp=sharing).

⚠️⚠️**This presentation is a continuation of the Chainalysis session that regrettably couldn't be presented in its entirety at the AAG event due to time constraints, resulting in an interruption by the host.**

[https://youtu.be/Eq0zPTLd3K0](https://youtu.be/Eq0zPTLd3K0)

⚠️⚠️  The Chainalysis team has improved some points in the proposal. The changes are:

-   1M DOT instead of 10M USD
-   API access. Data surfaced within the Ecosystem Intelligence solution will be made available via API.
-   Onboarding from 10 months to 6 months.
-   Inclusion of AssetHub in the Onboarding.
-   And changes in the phases reducing the deadlines, please feel free to check the proposal
-   All changes are highlighted

⚠️⚠️ We've released the AMA video from Chainalysis held on May 13th.

[https://youtu.be/OKrt2gGe4Cw](https://youtu.be/OKrt2gGe4Cw)

Chainalysis is proposing to collaborate with Polkadot by providing data, analytics, and compliance solutions to help Polkadot grow their business compliantly within the institutional market. Chainalysis is requesting 1,000,000 DOT to provide tooling to Polkadot that helps them enter the institutional market by providing visibility to regulators and authorized institutional prospects of any risky on-chain activity related to the DOT token on the Relay Chain, offering on-chain intelligence to authorized institutional clients to meet their requirements related to the listing of the DOT token, and collaborating with Polkadot on events, announcements, case studies, etc. The proposal aims to increase market capitalization, capture a larger market share of institutional market growth in the crypto assets space, grow adoption on crypto markets across the world, avoid fines and reputational losses, and grow in popularity among institutional clients that are building applications in this ecosystem and driving growth of the developer's community. The proposal has been updated to request 1M DOT instead of 10M USD, API access, onboarding from 10 months to 6 months, inclusion of AssetHub in the onboarding, and changes in the phases reducing the deadlines.

Chainalysis analytics solutions on Polkadot Relay Network

- **Pop Network** helps developers build smart contracts easily on Polkadot using the DOT token.
- It simplifies Polkadot's complex technology, making it easier for developers to create apps.
- Pop Network uses APIs to let smart contracts access Polkadot's features without needing to understand its complexity.
- It is already live on the Paseo testnet and supports the PAS token.
- The team, R0GUE, has experience from Parity Tech and knows a lot about Polkadot.
- They are asking for $587,100 (83,906.81 DOT) to complete development and deployment on Polkadot.
- Pop Network aims to make Polkadot more popular and increase the use of DOT tokens.

WHO: R0GUE, a team of ex-Parity Tech Delivery Service’s engineers.

WHAT: Pop Network, an ink! enabled parachain that offers straightforward and stable interfaces (APIs) to smart contracts and only uses the DOT token.

PRICE/TIMEFRAME/RESOURCES: $587,100.00 (83,906.81 DOT) to achieve milestones 1 and 2 of Pop Network, encompassing development, auditing, and deployment on Polkadot.

Pop Network | Enabling simple and powerful smart contract development, with DOT

### Summary of JAM Proposal

- **JAM Protocol**: A decentralized, cryptoeconomic protocol proposed as a potential replacement for the Polkadot Relay-chain.
- **CoreJam**: An early version of the JAM protocol, proposed in Polkadot Fellowship RFC-31.
- **Responsibilities**: If approved, Polkadot Fellows would be responsible for ratifying the final JAM protocol, defining tests, and ensuring compatibility with the Polkadot Relay-chain.
- **Deployment**: The Polkadot Relay-chain would halt when the JAM chain and compatibility service are ready, after professional audits.
- **Remark Call**: Approval of the proposal signals community willingness for JAM supervision by the Technical Fellowship, but no on-chain changes will occur.

Polkadot Fellows propose JAM, a decentralized protocol that could replace Polkadot Relay-chain. The proposal aims to ratify and define conformance and performance tests for the Polkadot JAM Protocol, and develop and deploy a Polkadot-Relay-chain compatibility service on the JAM protocol. The Polkadot Relay-chain should halt when the JAM chain, compatibility service, and required system parachains are ready for launch. The proposal is a remark call, signaling the community's willingness to accept the ratification and supervision of JAM by the Technical Fellowship.

Proposal for JAM Ratification, Conformance, Performance by Polkadot Fellows

staking_admin

lease_admin

fellowship_admin

general_admin

auction_admin

referendum_canceller

referendum_killer

small_tipper

big_tipper

small_spender

OpenGov Referenda

Origin able to dispatch a whitelisted call.

Origin for signaling that the network wishes for some change

Origin able to cancel slashes and manage minimum commission.

Origin for spending up to 10,000,000 DOT from the treasury as well as generally administering it.

Origin for managing the composition of the fellowship.

Origin able to spend around 250 DOT from the treasury at once.

Origin able to spend around 1,000 DOT from the treasury at once.

Origin able to spend around 10,000 DOT from the treasury at once.

Origin able to spend around 100,000 DOT from the treasury at once.

Origin able to spend up to 1,000,000 DOT from the treasury at once.

OpenGov Referenda

Referenda Tracks