Polygon plans to set up a decentralized autonomous organization (DAO) for Decentralized Finance (DeFi). The DAO is expected to have a total of 100 million users.
Polygon was one of the first successful scaling solutions for Ethereum. At the beginning of May 2021 in particular, the project experienced an enormous hype, which resulted in a price explosion for the MATIC token. As a result, Polygon was the first project to scale DeFi heavyweights such as SushiSwap (SUSHI), Curve (CRV) and Aave (AAVE). Even now, MATIC is still the top dog when it comes to scaling DeFi protocols – but the competition never sleeps.
According to the DeFi analytics platform DeFi Llama is currently over $ 5.3 billion on Polygon’s sidechain. At press time, MATIC is trading at $ 1.50.
Polygon DAO is expected to reach 100 million users
On August 19th, the MATIC team announcedthat it wants to set up a DAO to specialize in the DeFi sector. The goal of the DAO is to get 100 million users reach. In addition, Polygon is striving to establish several committees to facilitate collaboration and discussion between the various DeFi projects that use Polygon, should promote.
As the polygon ecosystem grows, committee members have the opportunity to improve mutual collaboration on their products
In addition, the team suggested several ways in which the various committees should be elected. On the one hand, only the MATIC stakers could be authorized to elect the committees. On the other hand, it would also be conceivable that all DAO token holders, i.e. all token holders of the protocols using MATIC, would be involved in the voting.
Not only MATIC is currently thinking about how decentralized governance should work in the future. Vitalik Buterin, the founder of Ethereum, recently wrote a post on decentralized governance. In this he called for the governance of DeFi protocols to be taken to the next level in order to achieve their full potential.