More than 300 people have been let go at Parity Technologies, the company behind Polkadot, a groundbreaking blockchain interoperability technology.
In a message made to X on October 12 by core contributor “chainyoda,” it is said that the number of layoffs exceeds the number of developers working on dapps distributed on the blockchain.
It is unclear how many staff have had their contracts terminated since Parity has not confirmed this information. On October 11, however, the corporation informed its audience of future intentions.
Parity has been a vocal supporter of decentralization and has said on platform X that they do not want to act as a “bottleneck, slowing down the growth of Polkadot.”
This necessitated a shift in tactics. It was announced that Parity will be “sunsetting its go-to-market functions to make room for the emergence of new ecosystem leaders” to drive the growth of Polkadot.
The Web3 Foundation has just announced a new initiative that Parity Technologies believes will assist cultivate the next generation of leaders who will take the Polkadot and Kusama ecosystems to the next level.
Kickstarter was introduced on October 10 by the Web3 Foundation. It plans to invest “20M CHF and 5M DOT throughout 2024” to spur growth in the two networks.
This information has been met with a variety of reactions. There is a school of thought that says investors fled the centralized finance (CeFi) sector after the failure of a number of major platforms that year, most notably FTX and Terraform Labs. A user commented on Chiyoda’s X tweet by saying that the industry’s “trust” problems had sped up the process of withdrawing liquidity. The only thing that can reset the business and draw in consumers is a “black swan event.”
Still others are optimistic that the change might stimulate growth in the number of on-chain participants. In the same way that the cryptocurrency market as a whole has been experiencing a prolonged bear market, the price of DOT has been falling precipitously from its all-time high in 2021.
The timing of a price increase for DOT is uncertain. The number of parachains in Polkadot is expected to grow from 100 to 1,000 in the following months. As a result of the enhancement, the network will be able to handle more than a million transactions per second.