Polkadot's token incentives struggle as daily activity and revenue decline, while proposed changes aim to attract users. DOT price continues to fall, along with volume.
Despite numerous token incentives, daily activity experienced a substantial 69.9% decline over the past 30 days, according to Token Terminal’s data. Concurrently, the revenue generated by Polkadot also fell by 25% within the same period.
These downward trends raise questions about the effectiveness of token incentives in attracting and retaining users.To revitalize user engagement, proposals have been made to make changes to the Polkadot network. One of them includes ato increase the number of validators. The suggestion entails a gradual addition of five new validators in each period until they reach 400.
This incremental increase is believed to strike a balance between security and network scalability. Core developers are supportive of such changes, further advocating for increased value and network participation.For instance, Polkadot’s cross-consensus message format witnessed a notable expansion in the first quarter of this year, extending beyond transfers. The number of channels utilizing XCM increased by an impressive 60%.
This growth indicates the growing adoption of Polkadot’s interchain communication protocol, potentially fostering greater interoperability and functionality within the network.Despite efforts to drive adoption, the price of Polkadot’s native token, DOT, has continued to decline in tandem with its trading volume. Over the last month, DOT’s volume fell from 250 million to 90 million.
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