Polygon, the second layer network for Ethereum scalability, announced its plans to build a DAO to mainstream the decentralized finance (DeFi) ecosystem and attract 100 million new users.
The new DAO that Polygon is building, the second layer network designed to improve the scalability of Ethereum, will welcome the next 100 million users in DeFi, the network developers stated in a release recent. As they explain, Polygon DAO will be a decentralized autonomous organization driven by its own community, which will favor decentralization in cloud-based systems. blockchain and will help mainstream the entire decentralized finance ecosystem, attracting 100 million new users and participants.
The idea behind this new DAO is to encourage the participation of all active members of the community of the cryptocurrencies, and DeFi projects, to present new and innovative ideas that drive the decentralized finance ecosystem to the next level. Additionally, the DAO also seeks to create new connections between DeFi protocols that are part of the Polygon ecosystem to encourage interoperability and grow Web3 development.
Polygon, whose growth in the last year has been over 8.000%, is moving towards building a decentralized autonomous organization (DAO) to foster and drive DeFi interoperability and adoption. It is worth remembering that the Polygon network brings together several of the most important decentralized finance protocols in the industry, such as SushiSwap, Aave, Balancer and Curve Finance, which chose the network to improve their scalability and performance and escape high gas rates in Ethereum a few months ago.
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$100 million to power Polygon DAO
The developers of the Polygon network reported that they will allocate funds totaling $100 million from their DeFi fund for the construction and development of the new DAO. The creation of this decentralized organization will give more prominence, governance and freedom to the community of crypto users who came to Polygon after the integration of the network with several of the industry's current protocols.
“These (DeFi) projects brought with them more than just TVL, but also their communities (the most scarce commodity in DeFi)”, the developers stated. Therefore, in addition to liquidity mining programs, integrations and product launches, Polygon wants to welcome the DeFi community by offering a revolutionary new autonomous, secure and transparent DAO ecosystem.
Polygon assures that it is ready to take this important step, as it has a very large and dynamic community, whose strength and experience will help make better decisions for the future of the Polygon ecosystem, Ethereum and the crypto space.
“We want to be able to leverage their combined strength and experience so we can make the best decisions for the future of the ecosystem.”
Polygon and 0x Protocol
This is not the first time that Polygon has ventured into the world of DAOs and decentralized governance. In June, the 0x protocol community joined forces with Polygon to create 0xDAO, with a fund of $10,5 million. The alliance between the two also allows 0x to bring its applications and products to the Polygon ecosystem, contributing to the construction of the more balanced and uniform financial system that Polygon wants to create worldwide.
DAO, boost development of the crypto ecosystem
Polygon notes that through the DAO, funding and grants to improve the crypto ecosystem will be better distributed. In addition, the DAO will allow scaling the solutions present in native Polygon projects, such as the Polygon SDK. Specifically, the developers indicated that integrations with ChainLink, TheGraph, among others, to optimize the platforms and solutions built in the SDK, may be financed through the decentralized organization, in common agreement of all community members.
The network explained that it has chosen to build a DAO to give the power of governance and control to the crypto community because it provides an inclusive, fair, transparent and balanced model. However, he also clarified that developing the DAO and “entering DAO mode” is something that will take time and will not happen overnight, which is why in principle it is proposed to implement working groups and committees under a council model. representative, although the initial idea will evolve in the coming months.
“The overall intention of Polygon is to decentralize specific internal decision-making and invite the community to participate in the continued development of the Polygon DeFi sector.”
MATIC and governance token
Polygon plans to launch governance tokens for voting on proposals among existing users of the protocol, although it stated that voting could be implemented in multiple ways; for example, by using the network's native token, MATIC or by participating in PoS.
At the close of this edition, the value of the MATIC token exceeds $1,42 per unit, with a growth of 92% in the last month. Polygon's plans to create a DAO are revealed just days after announcing its integration with the Hermez Network second-layer solution, to create “Polygon Hermez” and drive blockchain scalability based on zero-knowledge proofs.
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