Polygon (MATIC) Set to Implement DAO Features

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Altcoins
Polygon (MATIC) Set to Implement DAO Features

Polygon plans to introduce a Decentralized Autonomous Organization (DAO) for ether’s DeFi ecosystem. According to an announcement, incorporating a DAO mechanism should add 100 million more users into the network. Moreover, a $100 million fund may help bring the blockchain’s DAO concept to light. 

Improving DeFi’s Adoption Levels

A DAO describes an ecosystem whereby users enforce governance actions without oversight from any central authority. Polygon’s goal is to incorporate such a system, allowing users to pitch their opinions on Ethereum’s DeFi industry. 

Thus, developers and users can share a common platform and discuss ideas that will lead to a stronger community. Moreover, launching a DAO feature facilitates better interoperability between crypto projects. 

Besides improving the connection between DeFi platforms, Polygon’s DAO funding hopes to develop on-ramps to digital wallets and institutions. Examples of crypto projects recently approved into the DAO concept include Quickswap, SushiSwap, Aave, and Chainlink

A further DeFi adoption rate may also occur as Polygon mergers with 0x protocol. The partnership aims to use the $10 million DAO to fund projects leveraging the 0x APIs. 

Criteria to Follow?

Polygon conducted an in-depth evaluation on how it can approach the DAO concept. In the first method, token holders representing the DeFi community vote on various ideas driving the ecosystem. 

This approach is common on platforms such as BarnBridge, Compound, and many more. Furthermore, the DAO concept involves electing representatives from the network to work in groups or committees after their appointment. 

Remember, the community chooses these representatives. What’s more, Polygon admits that members may not have similar ideas or goals in most instances. 

So, the scaling solution hopes to kick-start the DAO idea by enabling committee members to campaign for their proposal. Council members are also given a three-month tenure duration to campaign and can face cancellation from the council if they fail to vocalize their proposal. 

That way, committee members can boost their product offerings through partnerships and secure rewards during their tenure.

Polygon Hermez is Here

On August 13, 2021, Polygon successfully acquired the Hermez network for MATIC tokens worth $250 million.

According to a release, Polygon plans on working closely with Hermez to deliver an additional scaling product to crypto projects. 

The collaboration is part of Polygon’s plan of venturing into Zero-knowledge proofs, which takes up a budget of $1 billion. 

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.