The Second Era of Polkadot: From Technology to Product and Social Impact

Even with a 30-minute speech, Gavin Wood at the Sub0 conference publicly revealed the core strategic changes of Polkadot. The new era is no longer focused on building the protocol but on bringing blockchain directly to everyday users through practical products.

Key Highlights from Sub0

Polkadot is transitioning through three development layers: protocol completion (done) → infrastructure building (in progress) → mass-market product launch (from 2026 onwards).

Notably, Polkadot Mobile—a new mobile app that will be renamed and integrated with revolutionary features. This app will become the main gateway for users to interact with Polkadot, combined with Project Individuality—a cutting-edge identity verification system based on zero-knowledge proof.

One of the most important moments: Gavin publicly declared, “The era of Polkadot with only technology and no products has officially ended.” The future will focus on Mobile Apps, decentralized identity infrastructure, and growth support tools.

Polkadot Mobile: The Gateway to the Masses

Initially known as a simple mobile app, Polkadot Mobile is now repositioned as a “Platform Gateway”—a comprehensive connection point for the ecosystem. Attendees had the opportunity to experience a demo version.

The integration of Project Individuality into Polkadot Mobile has greater significance: it is a mechanism for verifying real humans through cryptography + game theory, without phones, passports, or biometrics. Users will need to install Polkadot Mobile to participate in the fairest governance system built by Polkadot.

Gavin Wood proposes OpenGov: A Nationwide Activation Plan for Polkadot

Gavin’s “Polkadot People Initiative” is not a traditional airdrop but an experiment in rebuilding Web3 with real people.

The mechanism includes:

• Early registration incentives: Rewards for early participants
• Governance participation incentives: Rewards for meaningful community contributions
• Automatic global airdrop fund: Weekly $250 rewards, monthly $2,500 rewards, fully automated distribution without manual intervention

This proposal aims to transform “personalization” into Polkadot’s public infrastructure, supporting growth, governance, and security in the future based on “real people.”

The five strategic directions of the proposal: attract users → cybersecurity → governance balance → Hub integration → enhance mobile experience.

Parity’s Strategy: From Protocol to Practical Applications

Pierre, Vice President of Engineering at Parity, acknowledged a core issue: Polkadot does not lack technology but lacks truly operational applications. Besides DeFi, almost no projects have achieved sustainable usage models.

Parity has shifted from “only building protocols, not developing applications” to a new model: creating prototypes, demo products, then applying them into the ecosystem.

Regarding the Hub strategy, Parity does not see EVM and PVM as competitors but as complementary:

• EVM Layer: Contains proven DeFi applications
• PVM Layer: Handles high-performance computations that Ethereum has never done (Zero-Knowledge, AI, on-chain execution)

Polkadot’s competitive advantage is not copying Ethereum but addressing its gaps.

Core Technologies Have Matured

Polkadot has completed scalability verification. JAM (Join-Accumulate Machine) will be ready within approximately 12 months. This paves the way for Polkadot to support millions of users with Web2-level experience.

Parity is building a “decentralized AWS + iCloud + Firebase”:

• Compute: Polkadot/PVM
• Storage: JamDA, DataHaven, Eiger
• Notification: Fully decentralized P2P
• Identity: Project Individuality
• Applications: Parity is developing its own model

Scientific Advances from Web3 Foundation

Researchers Elizabeth Crites and Alistair Stewart announced a breakthrough overturning a fundamental mathematical hypothesis that modern SNARK systems (Zero-Knowledge proof systems) depend on. It is the Reed–Solomon theory, which underpins the performance assumptions of proof tools like FRI, DEEP-FRI, STIR, WHIR.

Impact: The industry will need to reassess the performance and security boundaries of zero-knowledge proof systems.

Jonas from Web3 Foundation announced the Dynamic Allocation Pool (DAP)—a new financial model helping Polkadot evolve from “issuance-based” to “income & reserve-based.”

DAP functions as Polkadot’s “central financial fund”: all protocol issuance and income (coretime + transaction fees) go into a common fund. From there, it pays validators (fixed salaries + DOT incentives), nominators, treasury, and establishes strategic reserves.

Nominators become a “liquidity staking pool” with minimal risk—no slashing and fastest unlocking within 1 day.

The treasury will no longer deploy principal capital but will accept both DOT and stablecoins, aligned with actual spending needs.

Hong Kong Officially Recognizes Polkadot as a “Key Enterprise”

Polkadot becomes the first blockchain ecosystem officially recognized by the Hong Kong government as a “strategic enterprise” (OASES Project). This is a milestone event.

For the first time in Web3 history, a decentralized ecosystem is recognized at this level by a government agency. This recognition is not just symbolic—the entire Polkadot Builders Party ecosystem has established direct communication channels with policymakers.

Polkadot Community Foundation (PCF) has been authorized to establish a subsidiary in Hong Kong, signing a strategic cooperation agreement with the government. The first legally recognized decentralized DAO organization, forming an official partnership with the government.

WisdomTree Applies for Crypto ETF, Polkadot (DOT) as a Core Asset

Asset management giant WisdomTree filed an S-1 registration with the SEC on November 7, planning to launch a crypto index fund tracking CoinDesk 20. The fund will hold directly the top 20 digital assets, including BTC, ETH, SOL, Polkadot (DOT), etc.

Recently, the SEC issued new guidance on ETF registration procedures. During the lockdown period, they received over 900 new ETF registration applications.

Grayscale submitted a Polkadot Trust ETF application on October 20, with two options:

• Option 1: Submit a revised filing to remove “delay,” enabling automatic effectiveness within 20 days—expected early December
• Option 2: File for “fast track” under Rule 461—earliest by late November

Hydration: From DeFi Protocol to Chain-Level “DeFi Operating System”

At Sub0, Hydration announced a strategic repositioning: not just a DeFi protocol, but a dedicated appchain built for DeFi.

Hydration integrates not only Swap, Lending, Stablecoin but also a complete toolkit:

Main modules:

• OmniPool: All assets traded within one pool, no fragmentation
• Lending (more advanced than Aave v3): Higher LTV, Partial Execution at Protocol Level (PEPL)
• Hollar stablecoin: Newly launched, integrated with automatic stability module, maintaining peg at 1 USD at chain level

Distinct features:

• XCM Rate Limiter: Unusual cross-chain traffic automatically triggers lock, preventing bridge attacks
• PEPL: Partial liquidation, ensuring execution priority order, reducing user losses

HDX has real utility: continuous automatic buybacks, protocol-owned reserve (POL) from 20-30M liquidity.

Next pillar: Perpetuals launching soon, competing directly with Hyperliquid.

Intent Engine + Smart Triggers: Enable complex automation—one click to swap → repay → deposit → stake cross-chain.

Final product—rains project: Smart wallet + savings account + credit limit + gamification. Auto on-chain account creation upon registration. Soon integrating QR payments (Argentina, Brazil).

Hydration is building an on-chain version of Revolut—the first Polkadot ecosystem product targeting the masses with on-chain financial services.

Acurast Completes $11 Million Funding Round

Acurast, a project within the ecosystem, has completed an $11 million funding round, with investors including Gavin Wood. Acurast aims to turn smartphones into “secure computing nodes” within the network.

Bifrost: A New Financial Model for the Ecosystem

Bifrost Foundation proposes holding profit-generating parachain tokens, allocating Polkadot treasury funds to mature DeFi protocols, with a model of inflationary funding rather than principal capital deployment.

Bifrost and many other DeFi protocols have stable income streams. If progress is smooth, the entire Polkadot DeFi ecosystem will have sustainable revenue, helping finance the treasury and enhance financial sustainability.

However, the proposal faces opposition: concerns over dependence on inflation, risks of unstable project yields, and potential impacts on current staking incentives.

Asset Hub Upgrade: DOT Staking Yield Returns to Normal

Polkadot Asset Hub completed upgrade to version 2.0.2. The update fixed irregular annual DOT issuance. Current issuance has returned to 328,797 DOT per day (about 120 million DOT/year). User staking yields are back to normal levels.

Polkadot at TechCrunch Disrupt

Polkadot appeared at TechCrunch Disrupt—the only blockchain project with an official booth. The booth attracted nearly 10,000 Web2/AI entrepreneurs over three days. Projects like Acurast, Frequency, Magenta Labs demonstrated Polkadot’s “deployable, usable infrastructure.”

The event proves Polkadot is actively stepping into the mainstream tech stage rather than remaining confined within Web3 circles.

Mandala Announces Three Partnerships at Sub0

• Bitlayer (Bitcoin L2) integrates Mandala: bringing “permissionless Bitcoin (YBTC)”
• INC Finance (a DAO platform): integrates Mandala
• AORUS (Onyx Minerals): bringing “physical gold onto the blockchain”

Harbour Industrial Capital (HIC): VC Focused on Polkadot

HIC is a dedicated investment fund for the Polkadot ecosystem, the second fund after Web3 Foundation as LP. While most VCs wait, HIC continues increasing investments, believing the ecosystem is significantly undervalued.

HIC’s investment criteria: real products and PMF, reasonable valuation, token deployment model, use of Polkadot/JAM, early-stage traction, team resilience.

HIC recognizes the bottleneck: Polkadot lacks VC capital, some funds require projects to “move to a new chain” before investing. HIC rejects this model, committed to deep development within Polkadot.

PBA (Polkadot Blockchain Academy) is HIC’s vetting ground—many projects like Xcavate, Kylix come from here. HIC is becoming one of the most dedicated, professional investment forces in the ecosystem.

Current Market Data for DOT

Polkadot (DOT) is currently trading at $2.08, with:

• 24h change: -1.37%
• 7-day change: -2.35%
• 30-day change: +2.61%
• Market cap: $3.44 billion
• 24h Volume: $610.42K
• Circulating supply: 1,654,395,363 DOT

Conclusion: From Technology to Social Impact

Polkadot is undergoing a profound transformation. No longer just a project focused on building technology, but an ecosystem aiming to bring blockchain into everyday life for the masses.

With Polkadot Mobile about to relaunch, Project Individuality about to integrate, real DeFi products like Hydration, and recognition from the Hong Kong government—Polkadot is making the leap from “technology” to “platform” to “social influence.”

The blockchain industry needs real products, not just robust protocols. Polkadot’s second era will determine whether blockchain can truly become a tool for building the future or just a promising technology.