What is Polkadot 2.0? Release „early“ 2024

What is Polkadot 2.0?

Polkadot 2.0 represents a substantial upgrade to the network. It aims to replace the existing lease-based model for parachains with a more flexible pay-as-you-go system based on Core time or processing power. This change will lower the entry barriers for smaller projects and make Polkadot more attractive to Web 2 businesses adopting Web 3 frameworks. The upgrade will also introduce new tokenomics, potentially boosting DOT’s liquidity and trading volume.

Polkadot 1.0 vs 2.0

A comparison between Polkadot 1.0 and Polkadot 2.0 highlights significant differences. The transition from slot leasing to a cumulative asset model will enable smaller projects to access Polkadot’s infrastructure without committing millions of dollars or locking up tokens for extended periods. The number of available parachain slots is expected to increase from a limited 50 to a range of 500 to 1,000 cores, further expanding Polkadot’s capacity to onboard projects.

Polkadot 2.0 Launch Date

Gavin Wood, Polkadot’s founder, has been actively involved in developing Polkadot 2.0. While the technology is expected to be ready by late 2023, the official upgrade and release will occur in early 2024.

This timing aligns with the end of the major DOT unlock events, potentially setting the stage for a new wave of positive sentiment. Polkadot 2.0’s new system for allocating block space could increase liquidity for the DOT token. Revenue generated from core time sales will be channeled into the Polkadot Treasury, and token holders will have a say in how these funds are distributed through governance. Periodic token burns are also being considered, which could make DOT deflationary and positively impact its price.

Personal note: as a bag holder i really hope this will bring some interest to DOT again and that the Update will counter the current high inflation of DOT. Early 2024 might be a good timeframe regarding BTC halving and the hopefully approval of spot ETFs