DOT Token in 2025: Governance, Staking, and Parachain Connections! 💰🔑
The DOT token is an integral part of the Polkadot ecosystem and has multifaceted utility in June 2025:
Governance: DOT holders can participate in the decentralized governance of the network by voting on protocol upgrades, treasury decisions, and other important changes.
Staking: DOT is used to secure the network through a nominated proof-of-stake (NPoS) mechanism. Nominators stake their DOTs to support validators and earn rewards (current nominal staking yield is around 15% per annum, real staking yield is 5-6%).
Bonding: To receive a slot on a parachain, projects must lock (bond) a certain amount of DOTs.