Parity Technologies, known for developing the Polkadot blockchain platform, has let go of over 300 employees.
Apost on X, shared by “chainyoda,” a core contributor, revealed that the number of employees laid off exceeds the total number of developers working on decentralized applications (dapps) deployed on the blockchain.
Parity’s Strategy: Embrace Decentralization
Parity Technologies hasn’t officially confirmed the exact number of employees affected by the layoffs. However, as of October 11, the company outlined its upcoming plans.
On the social media platform X, Parity expressed its commitment to decentralization, emphasizing its desire to avoid becoming an obstacle in Polkadot’s growth. To achieve this, they intend to enhance Polkadot’s technology, improve the experience for developers, and cultivate a robust developer community.
This shift in strategy involves Parity phasing out its go-to-market functions, making way for new ecosystem leaders to drive Polkadot’s development. In this transition, Parity Technologies highlighted a new program introduced by the Web3 Foundation, designed to support and nurture the next generation of leaders who will guide the development of the Polkadot and Kusama ecosystems.
The Web3 Foundation recently unveiled the Kickstarter program on October 10. This initiative aims to allocate “20M CHF and 5M DOT throughout 2024” to accelerate development within both ecosystems.
DOT’s Future: Mixed Reactions
The response to this news has been varied. Some strongly believe that the collapse of several centralized finance (CeFi) platforms in 2022, particularly FTX and Terraform Labs, caused a loss of capital in the industry. In a comment on Chiyoda’s tweet on X, one user mentioned that the industry is facing “trust” issues, which have accelerated the outflow of liquidity. They suggest that the only thing that can revitalize the industry and attract users is an unexpected “black swan event.”
On the other hand, some are optimistic that this new approach could spur activity and increase the number of users on the network. Like the broader cryptocurrency market, DOT prices have been facing significant selling pressure in recent months, pulling back from the record highs of the last bull run in 2021.
The timing of DOT price recovery remains uncertain. However, Polkadot developers have plans to expand the number of parachains from 100 to 1,000 in the upcoming months. This upgrade will enable the network to handle more than 1 million transactions per second.
Polkadot price on October 12| Source: DOTUSDT on Binance, TradingView
Increasing the limit will involve a series of software updates, including one called “Asynchronous backing.” This update aims to reduce block time by half, consequently enhancing the network’s capacity to process transactions.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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