A paradigm shift is happening in the Polkadot ecosystem

Polkadot’s ecosystem paradigm is a three-tier structure:

▸ Expecting Chaos: Kusama’s Community Adventure

KSM Holders vs DOT Holders ( Source: subscan.io )

Kusama’s Native Token

  1. On Kusama, the fraternity culture of the “Society” module emerged early on: Kappa Sigma Mu is a membership club based on the Substrate community platform. This is a community DAO motivated by social behaviors, aiming to encourage users to join a community where they can participate in rule-making. Treasury encourages community members to participate with rewards and incentives. At present, there is only one on- chain community on Kusama. More communities are expected to emerge when runtime upgrade is completed.
  2. Fast Upgrade of Governance Module: Treasury in the Governance Module supported only referendums and approvals. However, after Kusama community found the need to follow up on a large number of grants applications from Treasury, they developed “bounty” and “tips” for different scenarios. Bounty is for specific projects with rewards, where the council can assign a project manager to follow up. After completing the bounty, the manager will get a part of the rewardas well. Tip is for small rewards, which can be quickly allocated to daily community incentives and reimbursement.
  3. Native and technical edge-breaking projects such as RMRK are emerging.

▸ Technology Exploration: Common Good Chain, XCM and ink! Contract

▸ The Rise of Integrated Applications

▸ Constraints: frequent version updates of XCM and asset fragmentation

Karura TVL distribution
MoonBeam TVL distribution
  1. Due to the frequent version updates of XCM, most parachains are slow in confirming each other’s versions and interfacing with XCM for debugging. As a result, only Karura and Bifrost are connected to the 10 parachains running on Kusama, while most parachains are still in silos. Thus the combinatorial nature of the parachains has not been given full play. This has led to the DeFi in Moon ecosystem not yet interoperable with that of the Acala ecosystem, and to the fact that Moon bridged assets/Karura minted assets cannot be used in other parachains, so the increase of community’s demand to mint assets tends to become slower.
  2. Asset fragmentation: The Karura parachain already has two kinds of minted KSM assets (lKSM, vsKSM), while the assets on Moonriver are more complicated. We believe this led to a fragmentation of liquidity into N pieces for DeFi projects in the Polkadot ecosystem. Because applications that can fully leverage XCM for asset aggregation have not yet been built, resulting in liquidity being scattered among various fragmented assets and capital not being fully used to its utmost efficiency.

▸ Paradigm Shift

▸ Key Opportunities

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Founders fund in Polkadot ecosystem, running as a DAO venture. Long Polkadot, short Web2.0

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PAKA

PAKA

Founders fund in Polkadot ecosystem, running as a DAO venture. Long Polkadot, short Web2.0

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