Polkadot (DOT) is one of the star projects of the year 2022. After an explosive progress, and a severe correction, the project continues to develop by improving its very DNA: its governance system. It is a project that remains dynamic, and still lives under the snow of the crypto winter. Moreover, at 661% of its ATH, it offers an interesting entry point.
Polkadot (DOT), the blockchain chooses decentralization!
Polkadot (DOT) is changing its governance system. Decentralization is not just a catchword to please cryptocurrency enthusiasts. It’s what this ecosystem is all about. And it’s the goal. Indeed, without decentralization, the applications resulting from blockchain will have nothing new to offer. They will simply be blockchain versions of services and products that already exist today, in our centralized economies. Take currency for example. CADC is a tokenized asset that operates through a blockchain. However, if blockchain is limited to the infrastructure of that currency, then there is nothing new. No prospects for freedom, and it’s just the 2022 version of good old paper money.
Only, decentralization is a mystical tool, difficult to understand, implement and explain. This is something that the Polkadot (DOT) developer teams have understood well. The previous mode of governance, Gov1, had many mistakes, in the opinion of the Polkadot team. For example, some people had more power than others. In particular, the members of the Council or the Technical Committee. Thus creating first-class citizens, and therefore second-class citizens.
In the blockchain, you have to move forward or die
History, as Polkadot points out, is unforgiving of human organizations that do not evolve. Economies that do not trade, dictatorships that close borders, languages that do not add new words. It is on this image that the Polkadot team explained the need for a new mode of governance, but also the idea that the perfect mode of governance would never exist. The solution lies in change, adaptation, evolution. Blockchain is a revolution. But a revolution is like a bicycle: if it stops moving, it falls.
Despite a willingness to change, some flaws cannot change. 50% of the polkadots (DOTs) stakked will always allow to have the majority. But that’s the principle of democracy, isn’t it? Perhaps the importance of certain wallets in decentralized cryptocurrency ecosystems is pushing us to reinvent power-sharing models, to achieve a less proportional, but more just power. A new vision, which could inspire our political models, at a time when economic weight crushes common interests. All this in a world where the distribution of wealth is largely unbalanced.
Technical analysis and price forecast Polkadot (DOT)
Will these changes on the Polkadot side impact the price of the polkadot (DOT) cryptocurrency? The fate of the crypto is not necessarily linked to that of the project and the blockchain. However, the value of polkadot (DOT) depends on the staking. So it’s indirectly related to the governance system.
Polkadot has a market capitalization of 7.03 billion euros. This makes it the 12th largest cryptocurrency in Coinmarketcap’s ranking. It trades for €7.12 as of July 23, 2022, down nearly 6% from the last 24 hours. The polkadot (DOT) cryptocurrency is on an extremely low range of its price.
In August 2020 it first appeared on the crypto markets, with a price around $3. It then literally exploded to $55, up 2,984% on November 07, 2021. Thereafter, the crypto winter will have had reason for this meteoric rise. Polkadot went on to mark support at $5.94 on June 11, 2022, 89% below the ATH. Currently at $7.26, the previous ATH offers a 661% earnings opportunity
While Polkadot (DOT) is now this far below its ATH, it remains one of the most promising projects in the blockchain ecosystem in 2022. Its ability to constantly evolve and change its operation is a strength. It adapts, and does not die. These are good reasons to be confident in the future of this project.
