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Why is Polkadot falling so much (How high will Polkadot rise)?

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Why is Polkadot falling so much? The major reason for this crash is largely due

Why is Polkadot falling so much (How high will Polkadot rise)?

Why is Polkadot falling so much? The major reason for this crash is largely due to the unfavorable schedule of Polkadot’s parachain slot auctions. After the launch of Polkadot’s testnet, the project team made various changes to the parallel roadmap. From the initial design to the present, two years have passed and the Polkadot ecosystem has been in the early stages of development. However, due to code and governance flaws, some project development teams have chosen not to pursue technical innovation to achieve their goals. Therefore, when some people in the community consider DOT as “rat poison” and hope it can migrate successfully, there is no practical application scenario to support it. Would everyone think this is crazy at this time? So, what is the matter with Polkadot? Let’s briefly analyze the reasons:

1. The Polkadot network currently does not have a fully mature functional blockchain – it is a network composed of many different validators. Everyone can run their nodes in it to manage their smart contracts. Therefore, there is no need to build new shards or new consensus protocols to perform these tasks. If you want to create new data sets, you need to use the Substrate framework.

2. To address Polkadot’s issues, there is a token called Staking that can be used to pay fees instead of obtaining rewards through voting mechanisms. This token is called “Liquidity Mining”.

3. Due to the high cost of transfers in Polkadot, it is difficult for Polkadot users to participate in the network governance process. For example, you must use your DOT to purchase a new KSM and hold them in a wallet to unlock them. This is what we usually call the “LP” mode, which means that the proportion of the number of tokens users want to hold is proportional to the total supply. (Note that the value of DOT is not based on inflation but depends on deflation.)

4. Although Polkadot itself is a decentralized network, it is not an open platform or system, but its design philosophy is reasonable. For example, Polkadot as an open platform is built on a completely independent basis, on top of a permissionless and unmanaged public blockchain. However, it also has unique functions that allow people to trade on it or provide funds for other assets.

How high will Polkadot rise

Today, the block reward for Polkadot’s testnet RococoV1 is 50 DOT (equivalent to $180,000).

Before the mainnet launch, Polkadot has undergone two hard fork upgrades: the first batch is the new project Kusama built on Substrate. The second batch is the new project Cumulus, which is bridged by Kusama and Polkadot. The third and most important project is Crust Network. This time, we will focus on the ecological construction of Crust Network.

How high can Polkadot rise? I think it is likely to rise based on the current situation. However, it is still early in this time period, and it has not officially launched, so we still need to wait for the market to determine the next direction of development at a definitive point in time. As for Polkadot, it has three characteristics:

1. It can start quickly.

2. There is no fee issue because only participants can receive profits.

3. Completely decentralized.

4. There is no issue of blacklists or whitelists. (The above data is for reference only.)

Furthermore, if the Polkadot team wants to continue issuing coins, it may need to invest some costs and efforts. However, Polkadot has already developed to a certain extent, and many teams are working hard to solve problems, including community governance, and there are many things that many teams are trying to do.

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