The Polygon scaling solution launched a DAO to unify Defi interoperability and adoption, tapping in its $100 million funds to promote it and airdrop a new governance token to the users so let’s read more in our latest crypto news.
Ethereum’s Polygon scaling solution will launch a DAO to encourage DeFi interoperability and adoption as the company tapped other partners like Chainlink, Aave, and SushiSwap to help found the decentralized organization and to govern the initiative. The layer-2 scaling solution is used by plenty of DeFi services and platforms in order to conduct much cheaper and faster transactions than ETH’s mainnet can handle.
Defi is a catch-all term to describe the peer-to-peer lending, borrowing, and trading action which happens on the blockchain networks like Ethereum but it grew from a tiny niche corner of crypto that was worth a hundred million dollars in 2019 to $80 billion today. But still, there is room for improvement. Polygon wants to be at the heart of the action and formed a DAO to help make it happen. A DAO is a decentralized autonomous organization that spreads governance responsibilities across distributed networks rather than in the hands of a centralized authority. In most cases, DAO token holders can vote on the governance proposals.
Today, Polygon announced more plans for a DAO that can unify the disparate DeFi platforms and services with a shared architecture along with onboarding 100 million users to Polygon. In other words, it thinks that it will be good for Defi as this project aims to pump more money into the DAO to further these aims. Polygon will tap the $100 million Defi fund as it announced in April to fund the creation and maintenance of the organization but also finance projects which users think can help push the DeFi industry forward. The project aims to airdrop a new DAO token for the existing users as the organization formalizes:
“Polygon’s overarching intention is to decentralize specific internal decision-making and invite the community to have a say in the ongoing development of the Polygon DeFi sector.”
Polygon tapped a few of its partners to establish a DeFi DAO. Decentralized oracle network Chainlink is onboard already as well as Aaave, SushiSwap, and QuickSwap. Polygon’s announcement suggests that the funding could be used to create connections between the DeFi platforms too. With the announcement, Polygon is still sorting out all details but it suggests that it will be an evolving initaitive in the upcoming weeks and months.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]