Polygon to Form Decentralized Autonomous Organization
Ethereum scaling solution Polygon said it will build a decentralized autonomous organization (DAO) for the decentralized finance (DeFi) sector.
- Polygon's aim is for the DAO to attract 100 million users and invite this community to have a say in its ongoing DeFi development, according to an emailed announcement Thursday.
- Forming a DAO is "the next logical step" to aiding collaboration between blockchain-based systems, given the presence of projects such as SushiSwap, Curve and Aave already using Polygon as a scaling solution.
- It will use some of its $100 million #DeFiforAll Fund for the process.
- Polygon recently acquired ZK-rollup platform, Hermez, in the first blockchain network and token merger. The acquisition combined with the DAO formation will facilitate Polygon's further decentralization beyond its proof-of-stake model to become a cross-chain protocol.
- A recent DeFi report by ConsenSys found that the 20 largest DAOs hold a combined $20 billion worth of digital assets.
UPDATE (AUG. 19, 15:46 UTC): Adds move to cross-chain protocol, ConsenSys report.
UPDATE (AUG. 19, 17:25 UTC): Adds information about the acquisition of Hermez.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
