Polkadot upgrade: Faster transaction speeds, new governance rules boost DOT price
Polkadot (DOT) has announced an array of upgrades for its users as it enters the last quarter of 2022.
The upgrades on its recent roadmap, announed in a statement, included a complete overhaul of its governance system, a consensus protocol allowing ten times faster transaction speeds and new staking features.
DOT surged after the announcement, but its initial rally is starting to wane.
DOT to USD
Polkadot’s recent success
Since the in-depth update details were revealed by Polkadot, DOT saw bullish sentiment from investors. It rallied from a low of $6.18 on 26 September to a high of $6.79 the following day, an increase of almost 10%.
Polkadot has also recently seen successs in its developer activity. In the past 30 days, Polkadot had the most development activity, beating Ethereum and Cardano, according to Santiment.
???????? If you base your portfolio around assets that receive solid development activity on #github, then #Polkadot & #Kusama are worth looking into. Over the past 30 days, the assets have 14.3% more non-spam submissions than the next largest asset, #Cardano. https://t.co/DyfP9QJTCG pic.twitter.com/zpZ5e8vdjc
— Santiment (@santimentfeed) September 26, 2022
However, DOT’s price surge has started to calm with it showing signs of weakness. As of 28 September, it was trading at $6.27, down 6% in the past 24 hours and 9% over the past month, according to CoinMarketCap.
A speedy network
Polkadot’s new updates are set to significantly improve the network. It will be intergrating a consensus protocol titled asynchronous backing. This will reduce the block time for parachains to six seconds. The roadmap statement said:
The consensus protocol is anticipated to launch by the end of this year on the Kusama (KSM) blockchain, a canary network used by Polkadot to test upgrades. Asynchronous backing will then launch on Polkadot’s mainnet, “pending the results of audits and testing”.
KSM to USD
Governance transformation
Another major improvement that Polkadot revealed in its latest roadmap was a complete overhaul of its governance system.
It explained: “Our novel governance system removes the council and technical committees, introduces the Polkadot Fellowship, and moves every decision in Polkadot to referendums by the community.”
Users can submit and vote in these referundums, which will be enacted through a permissionless mechanism.
Other network improvements
There was also a hefty list of other upgrades in the roadmap.
In addition to governance and network speed improvements, Poldaot said it would implement nomination-based staking pools. These let users create their own staking pools, where others can join and nominate validators.
Polkadot also said it would add a bridge between the mainnet and Kusama, along with a new staking dashboard. Rob Habermeier, Polkadot’s founder, said:
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