Polkadot founder Gavin Wood has revealed a $777 million development fund ahead of canopy rental auctions.

Wood tweeted Sunday that the Polkadot Treasury has committed more than 18.9 million Polkadot (DOT) (about $777 million at the time of writing) to a development fund that will be paid for through Community Management.

Wood made broad proposals for how the money would be used, noting that the capital would be mobilized to achieve the community’s vision of “building, improving, and learning” the Polkadot ecosystem, as well as “everything else the Polkadot management considers valuable.”

According to the Polkadot Wiki, Treasuries can be used if approved by the Board of Directors, which votes on the proposals it makes. Polkadot’s council currently has 13 members, but plans to expand the council to 24 seats in the future.

Since there has been low community participation in the past with many votes from Polkadot management, a development fund may be earmarked to support DOT holder participation in the management process. According to Polkasimbel, three management proposals put forward last week yielded a total turnout of zero, six and seven votes, respectively.

Interested parties wishing to submit a proposal must reserve a deposit of at least 5% of the proposed costs, with the deposit reduced (burn-in mechanism to prevent auditor misconduct) if rejected, or refunded if accepted. With funds at risk in the event of a vote failing, Polkadot’s downsizing mechanism could be a factor in the way management interacts with the network.

A new development fund was also announced just weeks before the much-anticipated Polkadot canopy auctions, which will begin in early November, suggesting that funds could be allocated to launch development targeting the Polkadot canopy ecosystem in the future.

Polkadot’s canopy auctions will be used to realize Polkadot’s vision of a fragmented ecosystem. At auctions, Polkadot-based projects will compete for one of 100 tracks on the canopy by applying for a DOT lock.

Parachains are Polkadot’s fragmented sidechains that can host decentralized applications and protocols, provide specialized computing, and interact with the Pokadot Pro-of-Stake relay chain to complete transactions.

Polkadot’s current relay chain handles the transport, control and deployment services of the Polkadot network exclusively, and future chains should provide advanced features such as smart contract functionality and inter-chain interoperability.

Thus, the new development fund may aim to encourage developers to begin working with Polkadot in preparation for the launch of the parachute.

Related: Polkadot sees breakout at $75 after DOT Rally spots classic bullish reversal

Many observers have called the Coinbase-backed Acala network the pioneer in winning the first Parchain track on Polkadot. Karura Network, Acala’s distribution to Polkadot’s sister network, Kusama, won its first umbrella auction in Kusama by a large margin in June.

Karura has received support from over 15,000 organizations to win its slot machine with over 500,000 Kusama (KSM) bets (that’s nearly $184 million at the time of writing).

Source: CoinTelegraph