Boca Weekly Report | Reducing DOT inflation is imminent, Kusama may launch a lightweight version of JAM
Community discussions on DOT inflation continued to deepen this week. In a live broadcast organized by Alice und Bob, all parties in the ecosystem expressed their views on DOT inflation! Some people think we should set a fixed upper limit and set a step-down inflation to push Polkadot forward.”You either generate revenue or you die” Status! Jonas of the Web3 Foundation also cautions against sacrificing security in pursuit of Cap, and that DOT's should also be considered”Demand side” The basic situation.
Check out the full discussion in PolkaWorld's latest article“Close your face and open big! DOT Tokenomics won't change, will you finish playing Polkadot?”
PolkaWorld opinion: Should inflation be cut directly to 2%?
We believe that all discussions make sense. Generally speaking, we should open up resources and save money, expand on the demand side, and optimize on the supply side.
Demand side: How else can DOT be used?
Staking accounts for up to 50%, but high inflation has diluted DOT holders with safe costs. It should have been cut off.
DeFi is seen as the most promising new scenario, and DOT released by falling staking rates may flow into DeFi protocols.
Fees: The Polkadot architecture allows parachains to choose their own gas, causing high-volume projects such as Mythos and peaq to not directly feed back DOT. And we can force Polkadot Hub to use DOT as a processing fee!
Coretime: Too many high hopes are placed on it. The goal is to cover network costs, but the short-term pressure may be high, and a “low price attraction → later charge” strategy may be needed.
How effective the DOT ETF will be right now is yet to be determined!
Supply Side: Inflation and Caps
The current community plan suggests setting a fixed upper limit of 3.14 billion + stepped inflation decline, but the 20-year timeline is too long and there is no sense of actual change in the short term, which can easily cause the community to lose confidence.
PolkaWorld believes that if we want to achieve the “reset the game, or die” effect, we should directly reduce inflation to2%! The annual inflation rate is about 32 million DOT, which is 320 million US dollars in terms of $10/DOT, which is enough for cybersecurity.Or the upper limit should be fixed at 2.1 billion and step-down inflation to 0 in 5 years instead of 20 years. Give the community a real signal of change through “strong stimulation.”
What's your opinion? Should Polkadot “cut directly to 2%” to break the pattern of interests?
Therefore, we reviewed the development history of the public chain. We found that the rise and fall in token prices is only an indication, and the real transfer of power behind it often comes from the change of “bookmakers.” From the geeks and idealists of the Ethereum 1C0 era, to miners, DeFi capital, to Wall Street financial power after entering the ETF — every round of “changes” has changed the network's power structure and narrative.
So, where is Polkadot's “Journey to Change the House”?Will it experience a similar transformation? Who will be the “bookmaker” of the next generation of DOT? Learn more in PolkaWorld's latest article“Should Polkadot reduce inflation to 2%, breaking the established stakeholder pattern?”
Gavin proposed a discussion in the JAM Dev Group -- maybe we can launch a Kusama “lightweight JAM” first?Gavin said that if Kusama and Polkadot don't share the same JAM chain in the end, then Kusama can first run a smaller, faster JAM to become a “testing ground” for JAM technology.
Lightweight JAM settings
It can start with 32 cores (cores), which is much smaller than the JAM size (1023 cores) of future versions of Polkadot
Block time reduced to 1 second (depending on Toaster test results)
Potential benefits
Lower operating costs: Assuming the PoP+ lottery mechanism selects validators, the network back-up cost is only about $6 million/year, which can also be offset by Coretime rental revenue
Significant reduction in latency: Although throughput will drop, faster block times will make the JAM application on Kusama more “instant”
What do you think of it? https://x.com/polkaworld_pro/status/1951151952462844155
Polkadot Visa debit cards are here!This is an unmanaged card with no monthly fees, no recharge fees, and no opening fees!
You can directly use DOT, KSM, USDC & Asset Hub tokens in your wallet to swipe! It is also the first Visa card native to Web3, allowing Polkadot ecosystem assets to truly enter the everyday consumption scene! Learn about the progress of Polkadot Pay and Polkadot VISA cards here!“Easier than a wallet, faster than a credit card: Polkadot app brings Web3 to everyday life!”
PolkaWorld invited three guests directly involved in JAM's core developmentShare the latest developments in JAM! Take us into the world of JAM from a first perspective:
1. What does Gavin's major JAM update really mean?
2. How will JAM's token cap (pi x 1 billion) and PoP (Proof of Personhood) mechanism change Polkadot's economic model?
3. What are Milestone 1's technical goals and progress? When will the testnet go live?
4. How will ZK (Zero-Knowledge Proof) be integrated with JAM in the future?
5. How will JAM's governance mechanism and Grey Book Editorial Board affect the long-term evolution of the agreement?
If you want to know the future of JAM and how it will reshape the infrastructure of the Polkadot ecosystem. Recommended reading《JAM delivered within 12-20 months? Three core developers reveal M1, PoP economic models and ZK's future!》
This week, Parity announced the progress of its work at the Polkadot Forum and officially confirmed priority delivery of 100% EVM compatibility in the short term, and build a third-party service ecosystem (oracles, indexers, AML, etc.) to unlock the migration of top Ethereum dApps, empower the Rollup ecosystem, and increase market coverage.
Parity believes PVM is the future, but EVM must be ready now. The PVM toolchain is not yet complete (Solidity→PVM only supports 0.8+), so work other than Asset Hub migration will be suspended to fully focus on EVM.
Parity also revealed a possible timeline:
Now online: PVM preview (Kusama)
September: PVM Preview 2 (ERC20 + XCM pre-compiled)
End of October: REVM launches Kusama Hub
Mid-December: REVM + PVM preview launched on Polkadot Hub
In other words, Polkadot Hub will be 100% EVM compatible by the end of the year—— Let Ethereum dApps, third-party services, and DeFi protocols smoothly integrate into Polkadot while continuing to polish PVM and pave the way for future innovation.
Learn more here: https://forum.polkadot.network/t/polkadot-hub-prioritizing-growing-ecosystem-3rd-party-providers-inc-defi-asap-through-evm/14130
This week's big update! PolkaVM now supports direct calls to XCM (cross-consensus messaging) via a “pre-compiled contract” on the Polkadot testnet!https://x.com/polkaworld_pro/status/1949817445927334024
This means that Solidity smart contracts can natively implement cross-chain communication, and the underlying capabilities of multi-chain dApps are officially unlocked.
ink! The contract also applies. Cross-chain application developers, now is a good time to test the waters!
More features are coming soon:
Higher level abstractions (such as cross-chain token transfers) to make XCM calls easier to use
Expanded memory & gas optimization, Kusama is not far from being launched
Developer feedback is critical!
Fill out the feedback form: https://forms.gle/1Bhn4PDiD6pf4dgv8
or email feedback@kusama.network
Polkadot tweeted to celebrate 10 years of Ethereum!He also said, “Before the concepts of rollups, DAO, DeFi, and Web3 became popular, nothing had taken shape. There was only a group of geeks who relied on lots of caffeine to write code all night, opening a new starting point.” https://x.com/Polkadot/status/1950572103234695657
Ecological projects
Bifrost releases July monthly report!
Launch a new bug bounty program with Immunefi up to $500,000
DeFi Singularity Campaign Launched to Bring vDOT to Ethereum L2
vTokenVoting now supports the voting delegation function
vDOT enables cross-chain transfers between AssetHub and Bifrost
SLPx 2.0 now supports 3 types of vTokens across 4 networks
July TVL (total hedging volume) has reached $98,333,113
Learn more: https://x.com/Bifrost/status/1951221379203997800
Harbour Industrial Capital announces investment in Kylix Finance!HIC's investment is part of a larger strategic layout carried out by them within the Polkadot ecosystem. HIC's support further strengthens Kylix's mission:
Real cross-chain lending
Native asset interoperability
AI-driven risk management and fund scheduling
No bridges, no wrapped tokens
With this support, Kylix will continue to build a DeFi layer that uses capital efficiently, and is secure and scalable — not only serving Polkadot, but will even cover 16 different blockchains in the future. https://x.com/KylixFinance/status/1951195608712130887
FIFA Rivals officially announced downloads this weekExceed 1 million! https://x.com/FIFARivals/status/1949814253134762189
MIMBO Node announced a partnership with Crust Network, which has 700+ PB of decentralized IPFS storage capacity!Crust's trustless storage will power MIMBO's GameFi infrastructure, bringing it faster load times, safer asset management, and a truly player-controlled gaming economy! https://x.com/Polkadot/status/1951002810251907110
SubWallet brings a major feature upgrade to Polkadot users: Users can now directly “swap” assets (swaps) across chains with one click, such as BTC, ETH, and SOL, directly into DOT or USDC/USDT on the Polkadot Asset Hub, and there is no need to:
Use a cross-chain bridge (bridge)
Switch between wallets
The technical foundation is Polkadot XCM (cross-chain messaging) and Chainflip (a cross-chain swap protocol).https://x.com/Chainflip/status/1950560703690985630
Hydration hits a new high! DOT + vDOT liquidity surpasses 3.5 million units!
Hydration's pool is being frantically “filled with water,” and fluidity has soared all the way to a record high ATH
DOT + vDOT = Boca DeFi's New Engine
Stay Incurred! Keep it flowing! https://x.com/Polkadot/status/1950304600247927221
