DOT
Polkadot’s native token, used for governance, general operation, and bonding to support and secure the network.
What is DOT?
DOT is the utility and governance token of the Polkadot network. It plays a central role in how the ecosystem operates and evolves. Holders of DOT can stake their tokens to secure the Polkadot Chain (aka Relay Chain), participate in governance by voting on proposals, and bond tokens to support new rollups joining the network.
DOT was designed to align incentives across the ecosystem. It gives users and builders the power to shape network decisions and encourages participation in securing and maintaining the system. DOT also funds community-led initiatives through the onchain treasury, which supports software development, education, infrastructure, and other projects that benefit the broader ecosystem.
What is DOT used for?
DOT serves four key functions within the Polkadot ecosystem:
- Governance: DOT holders can propose and vote on changes to the network, from technical upgrades to treasury spending.
- Staking: DOT is used to support validators who secure the Polkadot Chain. Nominators back validators by staking their DOT, helping ensure network security.
- Bonding: When new rollups want to join the Polkadot network, DOT is bonded to signal commitment and support. This process helps allocate network resources.
- Treasury: DOT fuels the network’s treasury, which funds grants and community projects through an open and transparent proposal process.
Related Terms
Token lockup
A no-sell period for tokens to keep their market value stable.
