Blockchain project Polkadot has come under scrutiny after disclosing $37 million in marketing expenses, which has led to criticism from its community.

Polkadot, a sharded multi-chain network founded by Ethereum co-founder Gavin Wood, faces backlash over its marketing expenditure, as detailed in its H1 2024 treasury report. The report revealed that nearly $40 million was spent on “outreach,” aimed at attracting new users, developers, and businesses to the ecosystem.

Breakdown of Polkadot’s Marketing Budget

According to the report, over $20 million was allocated to advertising. Additionally, $10 million worth of DOT tokens were used for sponsorships, which included sports deals, collaborations with a race car driver, and a partnership with an e-sports tournament organizer. For comparison, Polkadot spent $23 million on developments in the first half of the year.

Community Reactions

The significant marketing expenses have sparked outrage within the blockchain community. Accusations of centralization and frivolous financial campaigns have surfaced. Victor Ji, co-founder of Manta Network, voiced 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.

“It’s insane to me how much money the Polkadot treasury is wasting on misplaced marketing,”

Another core developer at Polkadot, using the alias @seunlanlege, compared Polkadot’s financial decisions to those of the bankrupt FTX crypto exchange, highlighting concerns over the project’s financial management.

Financial Outlook

The report noted that at the current spending rate, Polkadot’s treasury has about “two years of runway left.” However, it also acknowledged the unpredictable nature of crypto-denominated treasuries. As of now, Gavin Wood has not commented publicly on the matter.

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