Polkadot has recently adopted two pledge governance proposals, and market concerns have returned to DOT. From 1 July to 6 July, the cumulative increase in DOT was about 12 per cent, and the price rose to $0.89 per cent, up from a low of close to $0.80 per cent.

Two proposals were adopted

The two proposals, Referenda 1909 and 1910 respectively, were first submitted on 23 June and approved on 6 July. The reorientation has focused on the safety requirements of the certifier and the efficiency of the pledge.

Of these, 1909 added a self-assurance incentive, a zero per cent commission and an unlicensed mechanism for pledge-deficit certifiers, based on the previously adopted “certifiers pledge at least 10,000 DOTs”. 1910 Exoneration of nominees and reduction of the nomination cycle from approximately 28 days to approximately 48 hours.

The pledge flexibility is significantly increased.

From the institutional point of view, the new proposal would, on the one hand, continue to increase the financial constraints of the certifying officers and, on the other hand, reduce the time cost of the nominees participating in the pledge. In particular, the liquidity will improve significantly when the cycle of untiement is reduced significantly.

Such adjustments usually help to increase the willingness to pledge participation and may also improve the way in which the network binds the conduct of a certifier. For Polkadot, this means that its pledge system is being adjusted more efficiently.

Price recovery and chain dynamics split

However, the price rebound was not synchronized with the chain activity. The latest data show that Polkadot's recent number of active independent accounts is still very low, with only five active accounts on 4 July and one on 5 July.

This means that the current DOT increase is more reflected in the short-term response of the market to the upgrading of governance and that there has been no synchronized improvement in the actual use of the network. It will be easier for the market to judge the sustainability of this round if there is a subsequent upturn in chain activity, pledge participation and financial inflows.