$DOT is the native token of the Polkadot network, a next-generation blockchain platform designed to enable interoperability between multiple blockchains. Polkadot allows different networks to transfer data and assets securely, creating a unified ecosystem where specialized chains can operate efficiently. Its relay chain coordinates consensus and security, while parachains handle specific applications and use cases.
The DOT token has multiple functions, including governance, staking, and bonding for parachain slots. Holders can participate in network decisions, vote on protocol upgrades, and earn staking rewards by securing the network through its nominated proof-of-stake mechanism.
With a strong focus on scalability, cross-chain compatibility, and developer-friendly infrastructure, DOT plays a pivotal role in building a decentralized Web3 ecosystem that connects diverse blockchains while maintaining security and flexibility.
