Polkadot Capital Group launches direct connection to Wall Street, W3F warns of inflation risk reduction
This week, the Growth Pressure Plan was replaced by the Medium Pressure PlanThis is a relatively less aggressive plan proposed again after Alice_und_Bob and Jay met and communicated. We've reorganized a comparison version, but I feel that Medium Pressure is no different from the previous Growth Pressure in terms of market capitalization pressure; it just took a little longer to reach the hard peak. So in the comparison between Hard Pressure and Medium Pressure, we can see: 1.The annual release volume of Hard Pressure was initially carried outA sharp decline(Blue line below) After 2052, or 27 years later, the annual increase in DOT was less than 1 million. 2.Overall annual circulation of Medium PressureMore gentle(Blue line below) Also after 2052, or 27 years later, the annual increase in DOT was less than 1 million. 3.At the same distribution ratio, Hard Pressure puts more pressure on the market cap than Medium Pressure. 4.Whichever plan you choose, we can pass it in the future after this proposalAdjust the allocation ratio parameters to adjust the pressure on the DOT market value and economic incentives. In summary, regardless of the plan, we can use two types of “pressure” to adjust how much “pressure” DOT market capitalization needs to face: The first pressure is pressure from varying degrees of decline in inflation The second pressure comes from the pressure to reduce the reward ratio for stakers For specific data reference, please check the figure below. You can also check out PolkaWorld's live broadcast of this week's proposal for a more detailed explanation: https://x.com/polkaworld_pro/status/1958363607449870719 Or check out PolkaWorld's article for a comparison of all current DOT inflation proposals.“If DOT inflation falls to 3%, how much will the market capitalization be to maintain cybersecurity spending?” In response to these proposals and discussions, Web3 Foundation research scientist Jonas Gehrlein notes that one critical issue is being overlooked: Economic security.Jonas believes that Polkadot's security does not exist out of thin air, but is based on validator and nominee pledges. In particular, those key validators at the “lower safety limit” rely heavily on inflation incentives for their safety. If inflation is cut drastically, Polkadot's economic resilience will decrease almost proportionately, and the network will be more vulnerable to economic attacks.In the worst case scenario (bribing existing validators), the cost of attacking Polkadot was only 14.71 million DOT, and if inflation were to plummet by half, this lower safety limit would drop directly to 8.18 million DOT, so the difficulty of the system to resist the attack was drastically reduced, and the risk increased dramatically。 Jonas's policy recommendations: Lowest Commissions & Lowest Self-Staking Enforce validators to set a minimum commission (such as 10%) to guarantee their long-term profits; Validators are required to have a minimum self-pledge amount (such as 10,000 DOT) to ensure “skin in the game.” Adjust the distribution structure Currently, about 280,000 DOT is added every day for staking rewards, and 50,000 DOT is used for the treasury; Overall inflation can be reduced by adjusting the ratio of the two, rather than simply cutting. (Jonas here also confirmed the importance of the adjustment ratios and parameters proposed by PolkaWorld in influencing inflation and market capitalization pressure.） Relaxation of the nominee mechanism Eliminate nominees' reduction and unbinding periods, reduce participation risks, and improve liquidity; Even if the yield falls, users will still be willing to participate in staking to maintain network security. Declining inflation curve + total cap Design a continuously decreasing issuance model so that the total amount of DOT gradually approaches a certain upper limit (such as Pi × 10DOT); Cooperate with coretime destruction and transaction fee destruction to make the economic model more sustainable. Jonas's core view is clear: simply cutting inflation = reduced safety; while reducing inflation + policy packages = making it possible to achieve “lower inflation + safer”. Check out all of his suggestions here: https://forum.polkadot.network/t/polkadots-economic-resilience-and-the-role-of-inflation/14515 Check out the latest developments in the JAM protocol: The agreement audit is expected to begin at the end of the year: The 0.7 series is nearing completion, 0.8 will introduce gas modeling, and it is expected that it will advance to 0.9 and begin the audit by the end of the year. The development toolchain continues to be improved: Parity and Gavin are building SDKs & documentation, CoreVM functionality is being enhanced (audio and video output, data I/O, transaction-based service communication), and EVM will be supported in the future. More teams will also participate in building their own JAM SDKs. In cross-service messaging (JAM version XCM/XCMP) development, it is also possible to directly use Hyperbridge to achieve cross-chain. Core collaborative scheduling (coreplay) is expected to be implemented within 12-24 months. Governance and standardization: The Grey Book will be transformed into technical specifications, and an editorial board will be set up to ensure openness and transparency. More than Polkadot's core protocol, JAM is likely to become a unified Web3 infrastructure. For more details, see PolkaWorld's latest article:“Gavin Wood's speech: JAM delivery and medium- to long-term strategies for introducing ZK into JAM!” According to PolkaWorld, Parity is building Polkadot Hub to become the home of DeFi! Short-term: 100% EVM compatible (REVM) launch, Ethereum applications can be migrated with zero changes Long-term: Develop RISC-V-based PolkaVM to support more complex and high-performance applications REVM allows developers, exchanges, and infrastructure service providers to access at almost zero cost, and the Ethereum ecosystem can be implemented seamlessly. PolkaVM is the key to breaking EVM limitations in the long term, bringing higher performance, multi-language support, and native scalability. This is Parity's two-tier strategy: take on Ethereum in the short term and reshape DeFi in the long term. For an in-depth explanation, see PolkaWorld's latest article:Polkadot Hub will prioritize the launch of a 100% EVM-compatible execution environment! Build an ideal home for DeFi apps!》 Big news! Polkadot officially launched Polkadot Capital Group, which is dedicated to building a bridge between Wall Street and Web3 in the context of increasingly clear US regulations. The organization, headed by David Sedacca, will closely link asset managers, banks, OTC trading desks, exchanges and venture capital institutions to the Polkadot ecosystem. Key directions include: CEX + DEX infrastructure, real-world asset (RWA) tokenization, staking, and DeFi! Sedacca said Polkadot Capital is establishing strategic partnerships with brokers, asset managers and fund allocators to provide “clear, credible, and enforceable resources.” The goal is to help organizations truly understand and utilize Polkadot's unique value. https://x.com/polkaworld_pro/status/1958119303427019244 The latest developments! DOT rapid unbinding (reduced from 28 days to 2 days) has been developed! All review opinions have also been processed! The PR has now been handed over to the code owner (Polkadot Technology Fellowship) and is awaiting merging according to the SDK roadmap and release cycle, which is expected after the Asset Hub migration (November 4). Learn more in the PolkaWorld article《Up to date! The DOT quick release feature has been developed! Expected to launch after Asset Hub migration!》 In Kusama referendum#569After successfully passing through and running smoothly for a week, RFC103 has been officially deployed on Kusama! This is a historic milestone worth celebrating with the entire Polkadot ecosystem.This upgrade means that the elastic expansion is finally fully launched on the Kusama networkKusama's parachains can now be safely calculated using multiple cores (cores), bringing higher throughput, lower latency, and greater scalability. Additionally, Parity expects this feature to launch Polkadot in early September, and the exact date will be announced after the relevant referendum is submitted!《Up to date! Elastic expansion officially launched on Kusama, and Parity expects to launch Polkadot in early September!》 The Web3 Foundation announced the fifth DV agent list this week! Including 7-digit DV representatives and 5-bit DV-Light, it is worth noting that the Foundation has introduced two AI agents to participate in DV-Light. This is the first time that AI agents have been included in OpenGov. Furthermore, more clear rules have been set this time. One person can only join one DV entity, need to avoid conflict, and lose the foundation's mandate if they break the rules twice. We look forward to DV5 turning more sounds into higher standards and making OpenGov more resilient in the next 4 months! https://x.com/polkaworld_pro/status/1957812154528407640 According to Token Terminal data, on Polkadot AssetHub, USDC monthly sending users increased by about 370% year-on-year!More and more users are sending and using USDC via Polkadot. https://x.com/tokenterminal/status/1958917113092968874 At Coinfest Asia 2025, the Polkadot booth became one of the most popular places to check inThe live atmosphere was full of energy and enthusiasm, and attracted a large number of developers and community members to participate and interact. Polkadot's community popularity in Southeast Asia continues to heat up, and the ecology is being recognized by more people in a more dynamic way. The Sneak Peek event has been released, so stay tuned for more great photos! https://x.com/MandalaChain/status/1958460700814381549 Ecological progress Mythos launches ambassador program! Recruit content creators to work together to promote the MYTH ecosystem. Possible creative directions: educational content, news, tutorials, game videos, visual works, memes, etc. The top 3 players of the month can get up to legendary cards + 500 MYTH Quarterly Ambassador rewards 1000 MYTH + rare cards There is also an additional bonus during the event, 100 MYTH for the top 10 players How to apply: Contact Community Manager @MythosCharley for the form. https://x.com/EnterTheMythos/status/1955001538755141914 At the 2025 Web3 Summit, Lollipop founder Qinwen_Wang presented a new perspective on understanding the JAM agreement! Her thoughts are very interesting; in her opinion, JAM is not just a technical iteration, but an opportunity to redefine the digital order! In PolkaWorld's latest video, let's talk about the real value of the JAM agreement from the perspective of “digital sovereignty” and global order. Tyrone, product leader at Bifrost, made a point that hit the pain point straight: price determines how secure the network is. He pointed out that if ETH staking reaches 10% + annualized, almost no DeFi protocols will survive because all liquidity will flock to ETH staking. This is the core dilemma facing Polkadot DeFi. He believes that cybersecurity depends on token prices, prices depend on liquidity, and liquidity only flows to places where there are applications. The example of Ethereum is intuitive: Ethena launched an event on Aave and attracted $1.5 billion in liquidity in just half a day. Speed is everything. So the question is: can teams deploy at the same speed on Polkadot? Can Polkadot Hub's pre-compilation bring this agility? This is Polkadot's positive cycle that we need to think about. What do you think? vDOT earnings strategy update!This week, Bifrost has compiled several different vDOT earnings methods for you to choose the most suitable plan according to your risk appetite: GDOT for Hydration Exchange any token to GDOT with one click to directly participate in the profit strategy You can also lend vDOT and borrow other assets on the Money Market https://app.hydration.net/strategies/gigadot Bifrost LoopStake Self-developed staking reward cycle amplification mechanism Up to 4x leverage No risk of liquidation https://app.bifrost.io/vstaking/vDOT?tab=loopstake Dot-vDOT LP on StellaSwap Customize LPs based on liquidity ranges The smaller the range, the higher the yield Locking up $STELLA can boost earnings and participate in voting https://app.stellaswap.com/pools/add/0xffffffff15e1b7e3df971dd813bc394deb899abf/0xffffffff1fcacbd218edc0eba20fc2308c778080 Bifrost Farming Create Dot-vDOT LP and deposit it into the Farming pool Earnings include $BNC rewards + transaction fees (distributed in the form of $BLP0) https://app.bifrost.io/farming?network=polkadot More tutorials can be found at: https://page.bifrost.io/support-lab Polkadot ecosystem stablecoin will be launched soon! Hydration decentralized stablecoin HOLLAR (Dietary Dollar) launched a testnet this week. Polkadot ecosystem stablecoin will be launched soon! The advent of stablecoins not only complements DeFi's infrastructure, but also means that Polkadot will enter a new phase in terms of liquidity, cross-chain payments, and asset pricing. https://x.com/polkaworld_pro/status/1958471617652121917 Are cross-chain messages always confusing?Have you written an XCM, but don't know where the message ended up? Try XCM Tracer developed by BlockDeep Labs! By entering the transaction hash and source chain with one click, you can track the status and results of the message in multiple chains. The visual interface is simple and intuitive, so don't get lost in the block explorer. Any Substrate based chain is supported. Use the easiest way to complete the most complex cross-chain tracking. https://tracer.xcm.app
