{"id":2952,"date":"2026-06-22T06:46:00","date_gmt":"2026-06-22T06:46:00","guid":{"rendered":"https:\/\/blockspaceballads.com\/?p=2952"},"modified":"2026-10-21T06:55:47","modified_gmt":"2026-10-21T06:55:47","slug":"dot-dao-and-the-need-for-jamkb","status":"publish","type":"post","link":"https:\/\/blockspaceballads.com\/?p=2952","title":{"rendered":"DOT DAO and the need for $JAMKB"},"content":{"rendered":"\n

<\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The JAM protocol presupposes the existence of a token to ensure soundness in its state usage. I argue that DOT would make a highly suboptimal choice and that a new, fixed-issuance token to represent the new Polkadot resource of JAM state makes the most sense. Assuming DOT DAO were to launch a Polkadot JAM for its upgrade, then this new resource-access token would be wholly owned by DOT DAO by default.<\/em> DOT utility would continue as at present, implying control of DOT DAO \u2014 and with it, effective ownership of the Polkadot JAM \u2014 as well as the means for staking, collateral and coretime payment within the Polkadot ecosystem.<\/em><\/p>\n\n\n\n

By Gavin Wood<\/strong><\/p>\n\n\n\n

JAM is a newly maturing protocol to manifest a highly distributed collective computer<\/em>. The vast majority of the data that this computer stores and retrieves is in a subsystem known as its Data Lake \u2014 its inbuilt large-scale distributed data availability<\/em> facility. However, some data is considered \u201cspecial\u201d and needed to be immediately available to all nodes at all times, similar to how traditional blockchain protocols manage their state. We refer to this in the JAM protocol as footprint<\/em>.<\/p>\n\n\n\n

All data in the footprint must be held in RAM by all validator nodes at all times. Note that this requirement is what makes it different from general \u201cstorage services\u201d: it\u2019s not that the data can be recalled fairly quickly when someone on the internet asks for it (that\u2019s a useful service too, but materially different to this). Rather it\u2019s that every one of JAM\u2019s validator nodes is storing the data in their RAM making access not just \u201cquite fast\u201d but immediate<\/em>. A protocol like JAM which manifests such a high-performance collective computer<\/em> is utterly dependent on this difference, and not merely for ensuring things \u201cgo fast\u201d, but even to ensure things are secure<\/em>.<\/p>\n\n\n\n

Since a JAM node\u2019s RAM is finite and well-specified under reference hardware, it is an inelastic and limited resource. In order to avoid the case of a single JAM service depleting this resource to the detriment of others, a special in-protocol resource-access token<\/em> is attached to its ongoing utilisation: services must hold as much of the access token as they wish to utilise of footprint. By limiting the number of resource access tokens in the system and ensuring that they can only be moved, but not created, we make the overall system sound and ensure no more footprint can be used than nodes can be expected to store.<\/p>\n\n\n\n

Ensuring that there is a 1:1 relationship between the resource-access token and the access to the underlying resource of footprint keeps the JAM protocol simple, fast and secure.<\/p>\n\n\n\n

We might call it the Polkadot JAM Footprint Token<\/em>.<\/p>\n\n\n\n

What token?<\/h2>\n\n\n\n

The JAM protocol is unopinionated as to the \u201cidentity\u201d of this token. It need not be related to any other token (such as one by which coretime sales are paid in, or which is used for staking, or which is used to represent interest in a DAO).<\/p>\n\n\n\n

In so far as the JAM protocol manages this token, JAM guarantees that the token can be passed from service-to-service without loss or fees and that tokens cannot be created beyond those at genesis. It is extremely simple.<\/p>\n\n\n\n

Since this token is used to linearly represent the inelastic resource of JAM\u2019s coherent state, the token\u2019s supply must be one with inelastic supply for it to properly be able to do the job of avoiding over-usage of JAM\u2019s state.<\/p>\n\n\n\n

Moreover, the more that the token is used for anything other than representing the ongoing costs of utilized state of JAM, then the less useful JAM can be, since every such token not used intentionally as a cost of holding state is preventing some other user from using the token for state.<\/p>\n\n\n\n

Ideally therefore, all such tokens would be held by services in accordance with their JAM state needs. In a saturated usage environment, a market effect would ensure that tokens are placed in the most economically useful services and would be moved between services on that basis. This ideal situation is not generally practicable since in order for tokens to change hands conveniently there must be some which are not \u201cin use\u201d. Still, minimising the reasons why tokens might be used outside of this helps optimise the market\u2019s ability to price this resource effectively.<\/p>\n\n\n\n

It is for this reason that I believe \u2018DOT\u2019 would be an extremely suboptimal choice for a JAM State Footprint Resource Access Token.<\/p>\n\n\n\n

Why not DOT?<\/h2>\n\n\n\n

As of last year DOT has a fixed supply, helping with one of the two qualities we would want to see in the JAM Service State Token. Unfortunately though, DOT is disqualified with the second: DOT has other uses which would use up some proportion of the underlying issuance base, making the supply which could be used for JAM\u2019s Service State utterly uncertain: It would be impossible to create a fixed-factor of DOT-to-bytes-in-JAM-state which at once would ensure a low clearing price for JAM state when under-utilized and a high-price when over-utilized.<\/p>\n\n\n\n

One possible way around this problem would be to alter the JAM protocol to avoid the linear representation of service-state-size to tokens. Instead of it being a fixed-factor, fewer tokens would be required when JAM\u2019s state is small (making usage cheaper) and more tokens would be required as it grows. Unfortunately, this has a number of drawbacks which, in my opinion, disqualifies it as a solution.<\/p>\n\n\n\n

Get Gavin Wood\u2019s stories in your inbox<\/h2>\n\n\n\n

Join Medium for free to get updates from this writer.<\/p>\n\n\n\n

Remember me for faster sign in<\/p>\n\n\n\n

In general a variable price will be optimally discovered by market effect, and any preset price curve will inevitably be suboptimal.<\/p>\n\n\n\n

As a continuous service, any variable pricing would need to ensure a number of qualities which are very difficult to bring together: it must be in the interests of those who place low-value data in the state when it is cheap for them to do so, to later remove it when the clearing price is high. Yet we also want to ensure that future costs are transparent, not arbitrary. Deductions must be either impossible or predictable.<\/p>\n\n\n\n

The book-keeping needed for such a variable token-to-data rate would introduce complexity exactly where it is unwanted: in the base layer protocol. Additional compute and storage would certainly be required at the protocol for storage-mutation operations. Parallelisation would be hard or impossible as multiple services alter storage at the same time. Practicalities could easily mean approximations on cost and those would limit the economic optimality of the solution.<\/p>\n\n\n\n

In essence, price-finding and rental arrangements ought not to be handled in the lowest-level of the protocol since they are necessarily either complex or ineffective (quite possibly both). Rather, in the interests of simplicity, only the minimal resource access accounting should be done at the lowest level sufficient to make the protocol sound. This disqualifies DOT as Polkadot JAM\u2019s state-footprint resource access token.<\/p>\n\n\n\n

Thus Polkadot\u2019s JAM transition would be better served by introducing a new totally specialised \u201cresource access\u201d token for state footprint, should this token have a market value, it would represent the expected value of retaining data in JAM\u2019s coherent state.<\/p>\n\n\n\n

What is $JAMKB?<\/h2>\n\n\n\n

$JAMKB would be a token which maps at a fixed rate to the state footprint usage on Polkadot JAM. All $JAMKB would be initially owned by the DOT DAO (and therefore commanded by the aggregated instructions of DOT holders). Every one $JAMKB which a service holds would be enough to keep 1KB in Polkadot JAM\u2019s state footprint for as long as it is held. Moving the token out of the service would require the 1KB of state to first be cleared.<\/p>\n\n\n\n

Since the amount of footprint we\u2019d expect JAM to have in total is around 20GB, then under this accounting it could perhaps have a fixed amount of 21 million issued.<\/p>\n\n\n\n

Should RAM become cheaper in time, then a single JAM network ought to be capable of storing more data in its state. In order to ensure that $JAMKB can represent the increase in capacity, the fixed rate would probably need to increase, and thus will be dynamic in nature and not require a hard-fork to alter.<\/p>\n\n\n\n

Since at present we must presume that the DOT DAO is launching the \u201cPolkadot JAM\u201d, the initial $JAMKB would, by default, sit on Polkadot\u2019s pre-deployed Parachains Service. Owning all $JAMKB, in the initial state anyway, ensures Polkadot Parachains continue unabated, however the resources of JAM are overkill for these needs.<\/p>\n\n\n\n

By restricting Polkadot JAM\u2019s coretime sales only to be used by parachains, it limits the utility of the one material revenue stream for DOT DAO. Novel usage for Polkadot JAM coretime inevitably revolves around the innovation of services on Polkadot JAM, and for services to be deployed there, $JAMKB must be in the hands of the service developers.<\/p>\n\n\n\n

We already see demonstrations of JAM out-classing parachains with its coretime usage by combining fine-grained synchronous-composability alongside vast scale, performance and continuous execution. Parachains can\u2019t do this. But Polkadot\u2019s JAM can host it to DOT DAO\u2019s advantage, if it ensures $JAMKB is easily available to those who might want to develop.<\/p>\n\n\n\n

I therefore believe that DOT DAO should consider:<\/p>\n\n\n\n

    \n
  • Creating a 1:1 representation of the $JAMKB Polkadot JAM state footprint resource access token on Polkadot Hub.<\/li>\n\n\n\n
  • Coming to some decision on bringing a substantial portion of this token into eventual permissionless private ownership (one example could be to drip-feed into an on-chain exchange).<\/li>\n\n\n\n
  • Ensuring logic exists for the token to be extracted from the Hub & parachains service and used within other services on Polkadot JAM.<\/li>\n<\/ul>\n\n\n\n

    I also place for consideration the idea that core developers, particularly those centred around JAM, be granted by DOT DAO some free Polkadot JAM usage to encourage further and continued development, innovation and experimentation. This could potentially happen through resource-access token grants or loans.<\/p>\n\n\n\n

    Conclusion<\/h2>\n\n\n\n

    I believe that the optimal launch of Polkadot\u2019s JAM network, and with it the most advantageous situation for the DOT DAO, necessitates a novel token $JAMKB to represent the fundamentally new resource in the Polkadot ecosystem of JAM\u2019s limited coherent state. Placing all $JAMKB under the control and ownership of the DOT DAO ensures economic alignment between DOT and $JAMKB, leaving the DOT DAO as the only entity capable of releasing $JAMKB to third-parties.<\/p>\n\n\n\n

    The creation and utilisation of $JAMKB as Polkadot JAM\u2019s state token complements and does not prejudice the other functions of DOT including as a DAO token, coretime payments, collateral and staking.<\/p>\n\n\n\n

    This post presents personal opinion, technical exploration, logical deduction and design principle. No token is being offered, sold, or distributed by me nor any legal entity I\u2019m affiliated with.<\/h2>\n","protected":false},"excerpt":{"rendered":"

    The JAM protocol presupposes the existence of a token to ensure soundness in its state usage. I argue that DOT would make a highly suboptimal choice and that a new, fixed-issuance token to represent the new Polkadot resource of JAM state makes the most sense. Assuming DOT DAO were to launch a Polkadot JAM for its upgrade, then this new resource-access token would be wholly owned by DOT DAO by default. DOT utility would continue as at present, implying control of DOT DAO \u2014 and with it, effective ownership of the Polkadot JAM \u2014 as well as the means for staking, collateral and coretime payment within the Polkadot ecosystem.<\/p>\n","protected":false},"author":1,"featured_media":2953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[103],"tags":[],"class_list":["post-2952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain"],"yoast_head":"\nDOT DAO and the need for $JAMKB | Blockspace<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blockspaceballads.com\/?p=2952\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DOT DAO and the need for $JAMKB | Blockspace\" \/>\n<meta property=\"og:description\" content=\"The JAM protocol presupposes the existence of a token to ensure soundness in its state usage. I argue that DOT would make a highly suboptimal choice and that a new, fixed-issuance token to represent the new Polkadot resource of JAM state makes the most sense. Assuming DOT DAO were to launch a Polkadot JAM for its upgrade, then this new resource-access token would be wholly owned by DOT DAO by default. 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