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Why Polkadot is the only Web3 utility token offering highest rewards to holders

  • Polkadot published a new update addressing the "Utility Token Trilemma," explaining Polkadot's sustainability by design.
  • Polkadot's clear governance process and platform design, maximizing social output.
  • Analysts set a target of $100 for DOT, based on a trend noted ahead of the previous price rally in the altcoin.

Polkadot is the Web3 utility token that is sustainable and offers holders stable and relatively higher returns. Analysts have a bullish outlook on DOT as the first Parachain slot auction.

Polkadot addresses the Utility Token Trilemma

The first Parachain slot auction is underway on the Polkadot network. The decentralized Web3 token is preparing for a multi-chain future with its Parachain auctions.

Polkadot offers a range of services that include Parachain slots with shared security and technological means to communicate within the ecosystem. 

Polkadot is a decentralized token where the protocol does not fix the price of the service but is rather competitively determined by users. Since the ecosystem uses the native token DOT in crowd loans and staking, Polkadot utility and adoption are rising consistently. 

The Utility Token Trilemma says that only two out of three features can be held in equilibrium. The three features are bonding of users' tokens, constant token value and a constant value of the provided services. 

Applying the trilemma to the Polkadot ecosystem, we see that the general setup of the Web3 token is stable. The token is not overvalued, and the value generation comes from Parachain auctions, lending, staking and increase in use cases. 

Other decentralized platforms may engage in price-setting behavior by design. Shiba Inu recently implemented a burn policy similar to that of Ethereum. Projects resort to burning or pulling tokens out of circulation permanently to drive the token's price higher. 

On the other hand, DOT relies on increasing utility by maintaining equilibrium and offering high value to token holders. 

Cryptocurrency analysts have evaluated the DOT price trend and predicted a rally to $100 based on the altcoin's performance in previous cycles. 

A pseudonymous cryptocurrency analyst @Hayess5178 accurately predicted the DOT price rally a week ago. The analyst believes that the DOT price could hit $100 over the next week. 

 

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