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The Forum serves as a digital town square to co-create the future of Polkadot by the ecosystem, for the ecosystem. Suggestions on how to improve the Forum live here.

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Welcome to the Polkadot Forum 👋

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Tech Talk

Intel SGX seems dead for blockchain applications

Lohann Paterno Coutinho Ferreira

My Experience with ink! and Why Rust Smart Contracts Matter for Polkadot

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Rethinking Web3: When Trustless Systems Matter

SO/DA zone

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[RFC Draft] ZK-Whiteblow: A ZK-Primitive to Solve Treasury Collusion &amp; Accountability

Diego

[RFC Draft] ZK-Whiteblow: A ZK-Primitive to Solve Treasury Collusion & Accountability

Addressing Concerns Related to Marketing Bounty Spends for BLAST Campaign

Anti-Scam Bounty Deep Dive (Revived)

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Where did the 10 DOT minimum coretime price come from?

Xiscocv

Polkadot Digest 12 December 2025

Radhakrishna Dasari

Polkadot Builder Party Hackathon Report

Karim | Product Engineering @ Parity

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Polkadot Ambassador Fellowship (PAF) Governance: Critical Questions Before On-Chain Implementation

Luke

Transition to the On-Chain Collective: Next Steps for the Ambassador Fellowship

Official statement of the Advisory Board of the Polkadot Ambassador Fellowship

If you’re looking for a resource, FAQ or guide, then this is the place to be. We urge all users of the forum to try and use this category when needed.

Resources & FAQs

How to P&lt;&gt;K bridge USDT or USDC

Alain Brenzikofer

How to P<>K bridge USDT or USDC

Asset Hub Migration - XCM FAQ

Remy Le Berre

Asset Hub Migration - Balances FAQ

<p>It used to be like that in the past, but the problem was that there were individuals who bought all the cores when they were extremely cheap and controlled the supply, and therefore the future price. Imagine one person buying 100% of the cores at $1; afterward, they could sell the cores at whatever price they wanted. That’s why a $10 minimum was implemented as a safety measure.</p>

<h1><a name="p-36115-rfc-draft-project-zk-whiteblow-a-zk-primitive-to-solve-treasury-collusion-accountability-1" class="anchor" href="#p-36115-rfc-draft-project-zk-whiteblow-a-zk-primitive-to-solve-treasury-collusion-accountability-1" aria-label="Heading link"></a>[RFC Draft] Project ZK-Whiteblow: A ZK-Primitive to Solve Treasury Collusion &amp; Accountability</h1>
<h2><a name="p-36115-collusion-thrives-in-the-dark-lets-use-zero-knowledge-to-turn-on-the-lights-2" class="anchor" href="#p-36115-collusion-thrives-in-the-dark-lets-use-zero-knowledge-to-turn-on-the-lights-2" aria-label="Heading link"></a>Collusion thrives in the dark. Let’s use Zero-Knowledge to turn on the lights.</h2>
<p><strong>Category:</strong> Governance / Tech &amp; Engineering<br>
<strong>Tags:</strong> <span class="hashtag-raw">#ZeroKnowledge</span> <a class="hashtag-cooked" href="/c/governance/11" data-type="category" data-slug="governance" data-id="11" data-style-type="square"><span class="hashtag-icon-placeholder"><svg class="fa d-icon d-icon-square-full svg-icon svg-node"><use href="#square-full"></use></svg></span><span>Governance</span></a> <a class="hashtag-cooked" href="/tag/treasury" data-type="tag" data-slug="treasury" data-id="13" data-style-type="icon" data-icon="tag"><span class="hashtag-icon-placeholder"><svg class="fa d-icon d-icon-square-full svg-icon svg-node"><use href="#square-full"></use></svg></span><span>treasury</span></a> <span class="hashtag-raw">#Rust</span> <span class="hashtag-raw">#AntiCollusion</span></p>
<h2><a name="p-36115-the-problem-the-whale-in-the-room-3" class="anchor" href="#p-36115-the-problem-the-whale-in-the-room-3" aria-label="Heading link"></a>The Problem: The “Whale” in the Room</h2>
<p>Polkadot’s OpenGov is one of the most advanced decentralized governance systems in the world. However, like all weighted-voting systems, it suffers from the Principal-Agent Problem:</p>
<ul>
<li><strong>Concentration:</strong> High token concentration allows large holders (“Whales”) to push through Treasury proposals that may not align with the collective good.</li>
<li><strong>Opacity of Execution:</strong> Once a Treasury Referendum passes and funds are disbursed, on-chain tracking stops. We rely on “social reports” to verify if the marketing campaign actually happened or if the software was actually built.</li>
<li><strong>The Silence of Insiders:</strong> Team members, sub-contractors, or multi-sig signers often see mismanagement or fraud (e.g., funds siphoned off for personal use) but stay silent due to fear of doxxing, retaliation, or blacklisting by influential whales.</li>
</ul>
<p>Collusion becomes profitable because accountability is low. If a Whale votes to fund a crony project, and that project embezzles the funds with no consequences, the Treasury bleeds.</p>
<h2><a name="p-36115-the-proposal-whiteblowing-whistleblowing-as-a-service-4" class="anchor" href="#p-36115-the-proposal-whiteblowing-whistleblowing-as-a-service-4" aria-label="Heading link"></a>The Proposal: “Whiteblowing” (Whistleblowing-as-a-Service)</h2>
<p>I propose integrating a Byzantine-Fault Tolerant ZK-Primitive directly into the governance stack (potentially as a system parachain or a Pallet).</p>
<p>“Whiteblow” is a protocol that allows insiders to cryptographically prove financial misconduct or data mismatches regarding a funded proposal without revealing their identity.</p>
<p>It changes the game theory of collusion:</p>
<ul>
<li><strong>Current State:</strong> Looting the Treasury is safe if you have the votes.</li>
<li><strong>Whiteblow State:</strong> Looting is high-risk because any insider (dev, accountant, multi-sig holder) can anonymously prove the fraud, slash the project’s staked DOT, and claim a bounty.</li>
</ul>
<h2><a name="p-36115-how-it-works-the-architecture-5" class="anchor" href="#p-36115-how-it-works-the-architecture-5" aria-label="Heading link"></a>How It Works (The Architecture)</h2>
<p>We have built a Proof-of-Concept in Rust using the Twisted ElGamal encryption scheme on the Ristretto255 curve (the same family as Polkadot’s sr25519).</p>
<h3><a name="p-36115-the-protocol-flow-6" class="anchor" href="#p-36115-the-protocol-flow-6" aria-label="Heading link"></a>The Protocol Flow:</h3>
<p><strong>The Commitment:</strong> When a team requests Treasury funds, they must register a set of “Insider Keys” (pubkeys of team members/signers) and lock a portion of tokens (or future vesting) as a bond.</p>
<p><strong>The Detection:</strong> An insider detects a discrepancy (e.g., The on-chain report claims $100k for “Vendor X”, but the internal invoice shows $10k or a transfer to a personal wallet).</p>
<p><strong>The ZK-Proof:</strong> The insider runs a client-side Rust binary that generates a Zero-Knowledge Consistency Proof:</p>
<ul>
<li>Encrypts the discrepancy amount (Twisted ElGamal).</li>
<li>Proves the math is correct (Chaum-Pedersen).</li>
<li>Attests membership in the “Insider Set” (Schnorr/Ring Signature) without revealing which insider they are.</li>
</ul>
<p><strong>The Slash:</strong> The network verifies the proof. If valid, the smart contract automatically slashes the project’s bonded DOT.</p>
<p><strong>The Bounty:</strong> The slashed funds are split: burned (deflationary) and sent to the whistleblower’s fresh address (Bounty).</p>
<h2><a name="p-36115-why-this-fits-polkadot-7" class="anchor" href="#p-36115-why-this-fits-polkadot-7" aria-label="Heading link"></a>Why This Fits Polkadot</h2>
<ul>
<li><strong>Rust Native:</strong> The entire toolkit is built in Rust using curve25519-dalek, ensuring compatibility with Substrate and WASM runtimes.</li>
<li><strong>Treasury Efficiency:</strong> It acts as a “Decentralized Auditor.” Instead of paying Big 4 firms to audit huge proposals, we crowdsource integrity to the people closest to the data.</li>
<li><strong>Sybil Resistance:</strong> Proofs are bound to specific BountyIDs and key sets, preventing spam.</li>
</ul>
<h2><a name="p-36115-technical-deep-dive-8" class="anchor" href="#p-36115-technical-deep-dive-8" aria-label="Heading link"></a>Technical Deep Dive</h2>
<p>The core logic relies on a Non-Interactive Sigma Protocol (Fiat-Shamir).</p>
<ul>
<li><strong>Encryption:</strong> We use Twisted ElGamal to allow the network to operate on encrypted “misconduct values” (e.g., checking if Discrepancy &gt; 0) without seeing the raw data initially.</li>
<li><strong>Binding:</strong> We use a Chaum-Pedersen proof to bind the Intent (The Proposal ID) to the Evidence (The encrypted mismatch). This prevents “replay attacks” where a whistleblower tries to slash the wrong project.</li>
</ul>
<p><strong>Code Reference:</strong> You can review the cryptographic primitives and the BFT logic in our open repository: <a href="https://github.com/labormedia/zk-whiteblow" rel="noopener nofollow ugc">zk-whiteblow</a></p>
<h2><a name="p-36115-request-for-comment-9" class="anchor" href="#p-36115-request-for-comment-9" aria-label="Heading link"></a>Request for Comment</h2>
<p>Looking for feedback from the community, specifically:</p>
<ul>
<li><strong>Integration:</strong> Should this live as a standalone Parachain offering “Audit Services” to the whole ecosystem, or as a Pallet integrated into the Asset Hub?</li>
<li><strong>Economic Parameters:</strong> What is the ideal % for the Whistleblower Bounty to incentivize honesty without encouraging frivolous reports?</li>
</ul>
<p><strong>Diego Correa Tristain</strong><br>
Polkadot Blockchain Academy, Cohort 3</p>

<h2><a name="p-36112-polkadot-news-1" class="anchor" href="#p-36112-polkadot-news-1" aria-label="Heading link"></a>Polkadot News</h2>
<p>The Polkadot Builder Party hackathon full report has been published on the Polkadot forum <a href="https://x.com/Web3foundation/status/1999416664555934124" rel="noopener nofollow ugc">https://x.com/Web3foundation/status/1999416664555934124</a></p>
<p>The referendum "Advancing OpenGov’s Core: Governance Enhancements &amp; Automated Analytics, Cost Optimization, and Infrastructure Expansion – Retroactive Funding Request” has been submitted by Polkassembly <a href="https://polkadot.subsquare.io/referenda/1814" rel="noopener nofollow ugc">https://polkadot.subsquare.io/referenda/1814</a></p>

<p>Excellent work and outcome, congrats to everyone that worked hard and contributed to make this happen and make it amazing <img src="https://emoji.discourse-cdn.com/twitter/clap.png?v=15" title=":clap:" class="emoji" alt=":clap:" loading="lazy" width="20" height="20"></p>
<aside class="quote no-group" data-username="radha" data-post="1" data-topic="16254">
<div class="title">
<div class="quote-controls"></div>
<img alt="" width="24" height="24" src="https://dub1.discourse-cdn.com/flex005/user_avatar/forum.polkadot.network/radha/60/9935_2.png" class="avatar"> radha:</div>
<blockquote>
<p>A comprehensive <a href="https://hackmd.io/kDVuV888R8a7OPeZhqNlXg" rel="noopener nofollow ugc">feedback analysis</a> has been shared with Parity’s DevEx team.</p>
</blockquote>
</aside>
<p>A goldmine of information/signal, thanks for compiling these.</p>

<p>Hello Crane, thanks for answering directly. I have a few follow up questions based on your reply.</p>
<aside class="quote no-group" data-username="Crane" data-post="11" data-topic="16247">
<div class="title">
<div class="quote-controls"></div>
<img alt="" width="24" height="24" src="https://dub1.discourse-cdn.com/flex005/user_avatar/forum.polkadot.network/crane/48/6535_2.png" class="avatar"> Crane:</div>
<blockquote>
<p>Curators operate without legal entity protection. They’re individuals with publicly identified addresses. When you’re distributing tournament prize pools, you’re sending funds to dozens of unknown recipients around the world without KYC. Creating a direct on-chain trail from identified curator addresses to mass distributions like that exposes those individuals to personal liability in ways that are genuinely risky.</p>
</blockquote>
</aside>
<p>You are saying the Marketing Bounty curators operate without legal entity protection. However, <a href="https://polkadot.subsquare.io/referenda/1416" rel="noopener nofollow ugc">Opengov #1416</a> is proposed, voted on and executed in March 2025 <strong>specifically to provide a legal vehicle for the Marketing Bounty</strong>, including the ability to contract and process fiat payments through the Polkadot Community Foundation.</p>
<p>It states:</p>
<blockquote>
<p>This proposal establishes an overarching framework through which the Marketing Bounty can execute formal contracts with service providers on behalf of the Polkadot DAO. The Polkadot Community Foundation will act as the legal counterparty for these standardized contracts.<br>
(…)<br>
Article 3 - Framework</p>
<ol>
<li>The objective of this framework is to create a streamlined (fast and affordable) process for providing SPs with a legal counterparty and fiat payments if they require them.</li>
<li>The MB is permitted to instruct the PCF to process fiat payments and manage contractual relationships and related administrative work (such as KYB procedures) with SPs.<br>
(…)</li>
</ol>
</blockquote>
<p>Given that framework, why was the PCF not used in this case? Based on the timeline, there does not seem to have been a time constraint. As you confirmed, <strong>the funds stayed in your personal Kraken account for 35 days</strong>, from 3 November to 8 December.</p>
<aside class="quote no-group" data-username="Crane" data-post="11" data-topic="16247">
<div class="title">
<div class="quote-controls"></div>
<img alt="" width="24" height="24" src="https://dub1.discourse-cdn.com/flex005/user_avatar/forum.polkadot.network/crane/48/6535_2.png" class="avatar"> Crane:</div>
<blockquote>
<p>This wasn’t to hide anything nefarious - it was to protect the Marketing Bounty curators.</p>
</blockquote>
</aside>
<p>One more point, and please correct me if I am wrong. From the earlier discussions, my understanding is that the <strong>other curators did not know this routing would be used</strong>. If that is accurate, why were the other curators not informed in advance, especially if the main purpose was to protect curators from personal risk?</p>

Bastian Köcher

<aside class="quote no-group" data-username="dhogberg" data-post="11" data-topic="16215">
<div class="title">
<div class="quote-controls"></div>
<img alt="" width="24" height="24" src="https://avatars.discourse-cdn.com/v4/letter/d/71e660/48.png" class="avatar"> dhogberg:</div>
<blockquote>
<p>We don’t need more cheerleading. We need honesty, market awareness, the courage to drop old vendettas, embrace competition, and react timely to change.</p>
</blockquote>
</aside>
<p><img src="https://emoji.discourse-cdn.com/twitter/100.png?v=15" title=":100:" class="emoji only-emoji" alt=":100:" loading="lazy" width="20" height="20"> <img src="https://emoji.discourse-cdn.com/twitter/100.png?v=15" title=":100:" class="emoji only-emoji" alt=":100:" loading="lazy" width="20" height="20"><br>
This should be painted on the walls!</p>

Irena Satke

Tom | Stake Plus

To the Polkadot Community: A Final Word from a Five-Year Holder

<p>Yes, I’ve seen the Excel file, but I still need to see <strong>three accredited pieces of evidence</strong>, which at the moment are missing:</p>
<ol>
<li>
<p><strong>An image or video of the supposedly malicious website</strong>, including a brief explanation of the potential risk. This is necessary to verify that the threat is real and not just a false positive.</p>
</li>
<li>
<p><strong>Emails with the hosting provider</strong> proving your involvement in taking the site down — or at least a copy of a form you submitted. Something concrete that shows actual action was taken.</p>
</li>
<li>
<p><strong>A confirmation that the site was actually removed thanks to your intervention</strong>, not simply a list of URLs for us to check ourselves.</p>
</li>
</ol>
<p>We cannot pay for a script that flags thousands of supposedly malicious websites <strong>without proper, verifiable evidence</strong>.</p>

<p>Thank you very much for offering support. <a class="mention" href="/u/piewol">@PieWol</a> from W3F will reach out to you to discuss this and share the progress on conformance testing effort.</p>

danicuki

Ensuring JAM Development Sustainability: Is It Time for a Dedicated JAM Bounty Program?

<p>Congrats team.</p>
<p>I believe that the work carried out by the team behind the X account is very important.</p>
<p>The transparency and professionalism they demonstrate is very noticeable.</p>
<p>Furthermore, it is essential for maintaining cohesion between the different Spanish-speaking communities.</p>

Lorena Blockya

Polkadot Spanish X account management - Report (Aug–Nov 2025)

<p>What a sh*t show.<br>
Censorship will be the final nail in the coffin for dot. Also using a treasury funded youtuber (Jay) to discredit specific people posting in the forum is abysmal.</p>
<p>I’m out of here.</p>
<p>Maybe I’ll check back in 5 years… but I doubt much will have changed.</p>

<h2><a name="p-36049-polkadot-news-1" class="anchor" href="#p-36049-polkadot-news-1" aria-label="Heading link"></a>Polkadot News</h2>
<p>The issue with Polkadot OpenGov treasury payouts of assets like USDC/USDT using the older XCM version address is fixed and will go live in the next runtime upgrade <a href="https://github.com/polkadot-fellows/runtimes/pull/1019" rel="noopener nofollow ugc">https://github.com/polkadot-fellows/runtimes/pull/1019</a></p>
<p>Retroactive funding request for Statescan maintenance for the year 2025 has been submitted <a href="https://polkadot.subsquare.io/referenda/1813" rel="noopener nofollow ugc">https://polkadot.subsquare.io/referenda/1813</a></p>
<p>Tune in to this live stream on Dec 12th (tomorrow) at 1 PM UTC hosted by Polkadot Africa, featuring Bill Laboon, the VP of the Ecosystem at Web3 Foundation, speaking about the Polkadot Hub <a href="https://x.com/PolkadotAfrica/status/1996550050198229241" rel="noopener nofollow ugc">https://x.com/PolkadotAfrica/status/1996550050198229241</a></p>
<h2><a name="p-36049-kusama-news-2" class="anchor" href="#p-36049-kusama-news-2" aria-label="Heading link"></a>Kusama News</h2>
<p>The referendum to approve unlocking the Robonomics parachain to restore its block production is passing unanimously <a href="https://kusama.subsquare.io/referenda/622" rel="noopener nofollow ugc">https://kusama.subsquare.io/referenda/622</a></p>

Polkadot Digest 11 December 2025

<aside class="quote no-group quote-modified" data-username="GabrielJ" data-post="22" data-topic="16187">
<div class="title">
<div class="quote-controls"></div>
<img alt="" width="24" height="24" src="https://dub1.discourse-cdn.com/flex005/user_avatar/forum.polkadot.network/gabrielj/60/6811_2.png" class="avatar"> GabrielJ:</div>
<blockquote>
<p>…anyone keen on staying anonymous can just create a new wallet… I wonder if it is really necessary?</p>
</blockquote>
</aside>
<p>It is necessary because a “new wallet” provides anonymity, but it does not provide credibility.</p>
<p>If a random fresh wallet claims a project is faking metrics, it is easily dismissed as FUD or noise. The ZK-proof allows that fresh wallet to prove: “I am a verifiable insider/signer” without revealing which one.</p>
<p>This distinction is critical for the economic correction:</p>
<ol>
<li>Game Theoretic Correction (The Reward)</li>
</ol>
<p>As you noted, currently “snitching has no reward.” To break the silence, we must pay the whistleblower.</p>
<p>• We cannot justify paying a random “new wallet” because we can’t verify their access or intent.</p>
<p>• We can pay a ZK-verified wallet because the proof guarantees they are a stakeholder. This allows us to safely automate the bounty payout, turning the “Traitor” into “The Reformer” with full Reputational Amnesty.</p>
<ol start="2">
<li>Liability &amp; Execution (The Auditor)</li>
</ol>
<p>Relying on OpenGov for execution is slow and political.</p>
<p>In this model, a neutral third party (The Auditor) or a ZK-Coprocessor bears the liability for executing the logic. They verify the encrypted ZKP (which proves insider status + fraud evidence) and trigger the halt immediately.</p>
<p>The ZKP acts as an anonymous credential, it hides identity and binds agency from ‘The Reformer’ (The Insider) to ‘The Auditor’ (The Executor).</p>

Marketing Bounty Deep Dive (Revived)

<aside class="quote no-group" data-username="joepetrowski" data-post="7" data-topic="15878">
<div class="title">
<div class="quote-controls"></div>
<img alt="" width="24" height="24" src="https://avatars.discourse-cdn.com/v4/letter/j/2acd7d/48.png" class="avatar"> joepetrowski:</div>
<blockquote>
<p>I want to put forward an idea that came up in a staking discussion last week with <a class="mention" href="/u/seadanda">@seadanda</a>, <a class="mention" href="/u/sigurpol">@sigurpol</a> , and <a class="mention" href="/u/kianenigma">@kianenigma</a> : Since we have a hard cap on total issuance, why not just issue the full amount into the DAP (a.k.a. Issuance Buffer)?</p>
</blockquote>
</aside>
<p>I was recently commenting on a <strong>Perpetual DEX–style analogy</strong> for the DAP in <a href="https://forum.polkadot.network/t/to-the-polkadot-community-a-final-word-from-a-five-year-holder/16215/9">another thread</a>, but I believe this comment by <a class="mention" href="/u/joepetrowski">@joepetrowski</a> is even more directly suited to that line of reasoning.</p>
<p>By comparing the <strong>Dynamic Allocation Pool (DAP)</strong> to the architecture of a <strong>Perpetual DEX Vault</strong>, it becomes clearer why the idea of <strong>pre-issuing the full capped supply and using it as collateral</strong> is not just risky — it’s potentially <strong>counterproductive</strong> to the goals of stability and sustainable tokenomics.</p>
<p>Opened to discussion:</p>
<hr>
<aside class="quote no-group" data-username="ThomasR" data-post="9" data-topic="16215">
<div class="title">
<div class="quote-controls"></div>
<img alt="" width="24" height="24" src="https://dub1.discourse-cdn.com/flex005/user_avatar/forum.polkadot.network/thomasr/48/1227_2.png" class="avatar"><a href="https://forum.polkadot.network/t/to-the-polkadot-community-a-final-word-from-a-five-year-holder/16215/9">To the Polkadot Community: A Final Word from a Five-Year Holder</a></div>
<blockquote>
<p>And PERP DEX won’t be a major game changer for the ecosystem, the ecosystem has never been a DeFi ecosystem by design. It’s not built for DeFi only (compared to some other eco).</p>
</blockquote>
</aside>
<p>I’ve argued that <a class="mention" href="/u/jonas">@jonas</a> ’ DAP proposal is effectively a Perpetual DEX Vault managed by a protocol-level algorithm. If we map the components, the isomorphism becomes clear:</p>
<ul>
<li>The Vault → the Allocation Pool (buffering volatility)</li>
<li>Funding Rate → the smoothing parameter (β), which adjusts outflows to preserve solvency</li>
<li>Insurance Fund → the underlying Inflation + Treasury creating the “security budget”</li>
</ul>
<div class="md-table">
<table>
<thead>
<tr>
<th><strong>Perpetual DEX Component</strong></th>
<th><strong>DAP Component (Jonas’ Proposal)</strong></th>
<th><strong>The Mechanism</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Liquidity Vault (GLP/ALP)</strong></td>
<td><strong>The Allocation Pool</strong></td>
<td>A buffer of assets (DOT) used to absorb shocks between inflow (revenue) and outflow (spending/rewards).</td>
</tr>
<tr>
<td><strong>Funding Rate / Rebalancing</strong></td>
<td><strong>Smoothing Parameter (ദ)</strong></td>
<td>A variable rate that adjusts to balance the “inventory.” In a Perp Dex, the funding rate penalizes the heavy side to force equilibrium. In DAP, ദ adjusts the “spend” to keep the pool solvent over time.</td>
</tr>
<tr>
<td><strong>Insurance Fund</strong></td>
<td><strong>Treasury / Inflation</strong></td>
<td>The backstop. If the Vault (Pool) runs dry due to a “price crash” (revenue drop), the system prints more DOT (inflation) or drains the Treasury to cover the liability.</td>
</tr>
<tr>
<td><strong>Traders (Long/Short)</strong></td>
<td><strong>Coretime Buyers / Validators</strong></td>
<td>The participants extracting value from the Vault.</td>
</tr>
</tbody>
</table>
</div><h2><a name="p-36031-the-economic-problem-with-dap-proposal-1" class="anchor" href="#p-36031-the-economic-problem-with-dap-proposal-1" aria-label="Heading link"></a>The Economic Problem with DAP proposal:</h2>
<p>However, if by virtue of similarity of the DAP proposal we contrast it with a “Perp DEX”-style architecture <strong>it reveals the exact economic trap</strong> I warned about in my critique of Jonas’ proposal <a href="https://forum.polkadot.network/t/proposal-dynamic-allocation-pool-dap/15878/35?utm_source=chatgpt.com">here</a>:</p>
<p>In a functional Perp DEX (e.g., GMX, Hyperliquid), the Vault is sustainable because <strong>external traders</strong> pay <strong>real fees</strong> (via PnL or funding) into the system. There is a <strong>purchasing power transfer from the outside world into the Vault</strong>.</p>
<p>In the current DAP model, however, we are building a “Perp DEX” where the protocol <strong>trades primarily against itself</strong>.</p>
<p>We treat <strong>blockspace allocation</strong> as “revenue,” but if that revenue is sourced from <strong>internal rotation</strong> (re-staking, treasury swaps, validator churn) — rather than from external market demand (Cambridge Coefficient <em>k</em>) — then the Vault is simply washing volume.</p>
<p>As I mentioned in the DAP thread:</p>
<blockquote>
<p>“When a system fails to couple its ‘GDP’ (activity) back to its ‘Reserve Asset’ (DOT) via enforced sinks, the velocity of money becomes infinite, k → 0, and the <strong>Cost of Corruption (CoC)</strong> collapses.”</p>
</blockquote>
<hr>
<p>If we implement a “Perp DEX” architecture without a <strong>Purchasing Power Anchor</strong>, then we’re <strong>automating the devaluation</strong> of the Insurance Fund (i.e., DOT holders). It becomes a sophisticated machine to burn our own equity with <strong>no innovation value</strong>.</p>

Proposal: Dynamic Allocation Pool (DAP)

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Subscan 2025 Q3-Q4 Funding Proposal: Basic service fee for the Kusama Relaychain and Kusama public parachain (AssetHub, Coretime, BridgeHub, People)

ZKAMA - ZK Verifier SDK Proposal {Post-AssetHub Hackathon Curation}

Unlock Winning Strategies with Playzone

Encointer Outlook for Q4'25 and Onwards

Sol-XCM | A typed interface for interoperability from Solidity

Implement a Kusama Forum MVP (Content Pallet v2)

Discovering the Dynamic Features of JLJL99

Implement pallet_content

Milestone-Based Payouts at Scale: Treasury Guardian Tool for Efficient Polkadot Treasury Spending

Subscan 2025 Q1-Q2 Funding Proposal: Basic service fee for the Kusama Relaychain and Kusama public parachain (AssetHub, Coretime, BridgeHub, People)

Executed

Whitelist for #622

- Four To The Floor (FTTF) is a music and video network from the UK.
- It started on TV and is now a digital platform owned by artists and fans.
- Their first event, Block Music Power, is streaming live online.
- They plan to host more live events, music shows, and documentaries.
- FTTF wants to support artists and fans fairly, not take advantage of them.
- People involved can help make decisions and share in the success.
- They use special digital tools and money systems to run the platform.
- Everyone is invited to join and be part of the community.

Preparing

Wish for change: Four To The Floor x Kusama

- We want to partner with Mattereum to turn a special motorcycle into a digital token on Kusama.
- This motorcycle is a rare BMW collaboration, one of only two ever made.
- It will be the first real-world asset on Kusama, with legal protection in many countries.
- This project will help bring new technology and skills to Kusama.
- The goal is to help Kusama create stable assets and build a strong financial foundation.
- The motorcycle is provided by Decent Partners, who support creative projects.
- We will create a digital version of the bike and special artwork for the community.
- The bike can also be used for future events and promotions.

Wish for Change: Pilot the first physically-backed and guaranteed Real World Asset (RWA) on Kusama Asset Hub via a partnership with Mattereum and tokenisation of the Auto Fabrica Type 18 motorcycle

- Robonomics parachain stopped making new blocks after an update.
- The update was meant to change how blocks are made, but it didn't work as planned.
- Because of this, some services like sensors and exchanges are not working fully.
- The team has a fix ready to solve the problem.
- They need permission to unlock the parachain to apply the fix.
- Once fixed, block production will start again and everything will go back to normal.
- After fixing, they will share what happened and improve testing to avoid future issues.

[Whitelisted Caller] Referendum #622

**Parity Index: Kusama's DeFi and Entertainment Hub**

- Parity Index is a new platform on Kusama for fun finance and entertainment.
- It lets people bet on contests, like "Kusama vs. Polkadot," using tokens.
- You can support the underdog and earn rewards if they perform well.
- It uses a special system called "ratio markets" to track how close rivals are.
- You can trade using KSM, DOT, or a stablecoin called dUSD.
- Part of each trade goes into a bonus pool for loyal supporters.
- It’s being tested now and will be fully open for everyone to use.
- Future contests could include sports, movies, or other crypto rivalries.

TimedOut

Introducing PARITY INDEX: A New Kusama Defi & Entertainment Hub Built Around Ratio Markets And On Chain Rivalries. Live for testing on Paseo

- Kusama wants to change how it gives out money.
- Instead of giving KSM tokens away forever, it will lend them.
- The loans go to companies that make stablecoins (like digital dollars).
- These companies pay back the treasury with stablecoins.
- This builds a savings fund that doesn't depend on KSM's price.
- Validators can be paid with stablecoins, making their income steady.
- Stablecoin growth is easy to measure and hard to fake.
- Vote YES to make Kusama more independent, or NO to keep things the same.

Wish For Change: Make Kusama Treasury Self-Financing

[Whitelisted Caller] Upgrade Kusama Asset Hub to fellows release v2.0.3

Delay Demo #2 Treasury Guardian

- The referendum is about testing a new tool called Treasury Guardian.  
- It includes a payment to Mr. Bill Laboon, which might be delayed or canceled.  
- The tool helps with milestone-based payments to improve treasury efficiency.  
- The goal is to get more people involved in Kusama and Polkadot OpenGov.  
- Follow [TreasuryEff on X](https://x.com/TreasuryEff) for updates.

Treasury Guardian On-Chain Demo

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