The development team behind Polkadot has said that it plans to develop and propose a new parachain governance framework known as ‘Statemint.’ Parity Technologies now wants to roll out a new parachain governance network that might boost the use case of the entire network.
“Statemint” is described as the first proposed common-good parachain for the general Polkadot network, as explained by Parity on March 9. Notably, a common-good parachain is a parachain that is granted slots through governance as opposed to the auction mechanism that mainly underlies Polkadot. The auction strategy never works effectively for all parachains especially those that are considered as ‘common goods.’
Hence, Statemint would enable Polkadot to offload a majority of its core features to special-purpose parachains while avoiding the free-rider issues. While operating as a generic asset chain, the Statemint function would enable any user to deploy an asset on the Polkadot network provided that they put up collateral in the form of DOT (Polkadot’s native crypto) or KSM for the case of Kusama.
Parity Technologies explained:
“Statemint will allow diverse entities, ranging from artists issuing tokens for their work to central banks issuing Central Bank Digital Currencies, to deploy their assets to the Polkadot network. By encoding these standards as first-class logic into the chain and allowing non-DOT-holding accounts to use the assets, users will face lower fees and friction when using their assets in the network.”
The developers from Polkadot never specified when the Statemint generic asset chain would be proposed, but they said that the development would start shortly. Operating as an interoperability-focused project, Polkadot has managed to surge through the crypto market rankings in the last year.
Last week, DOT surged to the fourth spot in the biggest crypto futures market, highlighting huge demand for the asset. DOT is now occupying the sixth spot in the market capitalization list with a value of around $31.4 billion, according to data from CoinGecko.