According to Mesari, Polkadot, a blockchain network designed to support an application-specific, interconnected Layer 1 chain, made significant progress in Q2 2023. The network launched OpenGov, a fully decentralized governance model, and XCM V3, a new iteration of the messaging format, both are expected to improve the functionality and interoperability of the network.

OpenGov introduces concurrent referendums, community-focused governing bodies, and greater delegation flexibility, allowing for a more efficient and transparent decision-making process. The new governance model replaces the Council and Technical Committee with Fellowship, a DAO developer that ensures decentralization through community voting and checks and balances. This change reflects Polkadot’s commitment to a more democratic and efficient decision-making process.

The release of XCM V3 has generated great excitement in the Polkadot community. The new version features advanced programmability, external networking capabilities, cross-chain locking, improved fee payment mechanisms, and support for non-fungible tokens (NFTs). This update is expected to pave the way for more functionality and interoperability across the Polkadot network.

Polkadot’s native token, DOT, was not marked by the SEC as a security. This follows the Web3 Foundation’s statement that DOT had morphed and was no longer considered a security after three years of discussions with the SEC. This omission from the SEC securities listing is a significant milestone for Polkadot, as it provides a level of regulatory clarity for the network and its users.

The network also saw Acala and Moonbeam re-leasing their parachain slots, signaling increased competition for slots as new projects look to join and existing projects aim to re-sign. The first batch of parachain leases will expire in October, which is expected to intensify the competition for parachain slots.

Polkadot’s market capitalization experienced a 16% quarter-over-quarter decline, from $7.74 billion to $6.24 billion. Despite this, Polkadot ranked as the 12th largest crypto project by market capitalization and the 4th largest base layer protocol, after Ethereum, Cardano, and Solana.

Going forward, Polkadot plans to implement additional system parachains, asynchronous backing, and parathreads, which will further improve network functionality, scalability, and interoperability. With one of the largest developer communities in the crypto space, Polkadot is well positioned to continue to deliver on its shipping roadmap and products.