Polkadot released a treasury operations report in the first half of 2024, which revealed significant promotional expenses that have sparked widespread community attention and questioning. According to the report, Polkadot spent approximately $37 million on promotion, accounting for nearly half of the total treasury expenses. These expenses were specifically categorized into advertising fees, event costs, and media production fees. The following is a detailed analysis and discussion of these expenditures.
1. Advertising and Promotion Expenses
Polkadot’s advertising expenses primarily focused on sponsorship fees, marketing and public relations companies, and digital advertising.
Sponsorship fees: Polkadot allocated $10 million for various sponsorship activities aimed at increasing brand awareness and influence.
Marketing and public relations companies: Polkadot collaborated with several marketing and public relations companies, spending $4.9 million. These companies were responsible for promoting Polkadot’s brand and marketing activities.
Digital advertising: Polkadot invested $4 million in digital advertising, mainly distributed across various social media platforms and cryptocurrency-related websites to attract more users and investors’ attention.
2. Event Costs
Polkadot allocated $7.9 million for various events, including $4.5 million for event expenses and $3.9 million for business development costs.
Event expenses: Polkadot organized and participated in numerous large-scale events to showcase its technology and ecosystem. These events not only increased Polkadot’s visibility but also attracted a significant number of potential users and partners.
Business development costs: Polkadot invested $3.9 million in business development to establish and maintain collaborative relationships with other blockchain projects, enterprises, and organizations.
3. Media Production Fees
Polkadot spent $3.2 million on media production, primarily used for creating high-quality promotional materials and content, including videos, images, and articles.
Video production: Polkadot produced a series of high-quality videos highlighting its technology, ecosystem, and future development plans. These videos were widely circulated in social media and the cryptocurrency community, enhancing Polkadot’s visibility and recognition.
Images and articles: Polkadot also produced a substantial amount of images and articles showcasing its technological advantages and market prospects. These contents not only attracted a large number of users and investors but also helped Polkadot establish a foothold in the fiercely competitive blockchain market.
4. KOL Placement and Challenges
A significant portion of Polkadot’s promotional budget was allocated to Key Opinion Leaders (KOLs). Polkadot aimed to expand its brand awareness through collaborations with multiple KOLs. However, Polkadot encountered several problems in selecting KOLs:
Fake followers and content manipulation: Many KOLs falsely inflate their promotional results by purchasing fake followers and manipulating content views. These false data not only waste Polkadot’s promotional budget but also negatively impact its brand reputation.
Robot accounts: Some KOLs use robot accounts to increase interaction with their content, which does not genuinely translate into Polkadot’s users and investors.
Low-quality promotional content: Some KOLs produce low-quality promotional content that fails to effectively convey Polkadot’s core values and technological advantages.
5. Community Response and Governance Challenges
The Polkadot community questioned the transparency and efficiency of treasury expenses, especially regarding the substantial promotion costs. Community members believe that Polkadot needs to manage its treasury funds more reasonably and transparently to ensure that these funds genuinely contribute to the project’s development and growth.
Decentralized governance challenges: Polkadot adopts a decentralized governance mechanism, which has certain advantages in enhancing transparency and community participation but also faces challenges of low decision-making efficiency. Community members hope that Polkadot can further optimize its governance mechanism to improve the efficiency of treasury fund utilization.
Doubts about promotion effectiveness: Despite the significant amount of funds invested in promotion, the effects are not apparent. Community members believe that Polkadot needs to reevaluate its promotion strategies, avoid blind investments, and ensure that every dollar is maximized.
6. Future Outlook
Polkadot’s substantial investment in promotion has generated controversy but also demonstrates its ambitious goals in market promotion and brand building. In the future, Polkadot needs to make improvements in the following aspects:
Enhancing fund utilization efficiency: Polkadot needs to strengthen the management and monitoring of promotional funds to ensure that every expenditure generates the expected results.
Optimizing KOL selection: Polkadot should be more cautious in selecting KOLs, avoiding those who use fake followers and content manipulation to falsely inflate promotional effectiveness.
Strengthening community governance: Polkadot should further optimize its decentralized governance mechanism to improve decision-making efficiency and transparency, ensuring the interests of community members are fully protected.
Although Polkadot’s promotion strategy and fund utilization face challenges, as long as adjustments and optimizations are made in a timely manner, its future remains hopeful. By strengthening fund management, optimizing promotion strategies, and improving community governance, Polkadot has the potential to secure a place in the fiercely competitive blockchain market.
