Polkadot's OpenGov Treasury Model: Directing Spending with On-Chain Voting

Polkadot's treasury model has undergone significant changes since June 2023, when it switched from a council-based system to OpenGov, an on-chain voting system that allows any DOT holder to propose and vote on funding requests. This new system directs spending from the Dynamic Allocation Pool (DAP), which was created in phases starting March 12, 2026, replacing a burn-based inflow model.

The DAP receives DOT from validator slashes and newly issued tokens, as well as transaction fees and coretime sales revenue, phased into the pool over subsequent phases. Governance directs spending across validator and staking rewards, treasury spending, and a strategic reserve.

OpenGov's proposal and voting system allows any DOT holder to submit proposals, which are sorted into one of fifteen tracks based on funding requests. Each track has its own voting duration and approval threshold, enabling the system to handle both small tips and multi-million-dollar allocations efficiently.