Ethereum’s scaling solution is in the process of forming a decentralised autonomous organisation (DAO) for the decentralised finances (DeFi) sector. Polygon is a layer 2 Ethereum scaling solution that reduces the cost and complexities of transactions while improving speeds within its network. It also uses side chains that aid in off-chain transactions and security. It accomplishes all this through the Proof-of-stake (PoS) validators.
Having established itself as a leading scaling solution, Polygon looks to lead the growth of the next wave of DeFi. It is already the preferred scaling solution for some of the top crypto projects like Dfyn, AaveGotchi, and Quick Swap. Various Ethereum based Defi coins, such as Curve and Balancer had also used it to scale to their million users.
By building the DAO, Polygon looks to attract over 100million users. After handling the millions of users that the initial Defi came with, it can easily scale to the hundred million. This will allow it to have a say in the various developments within the DeFi community.
To achieve this process, Polygon will use the $100million from the #DeFiForAll fund.
This move is the latest in Polygon development. The company has already had various acquisitions in its quest for growth. Early in August 2020, it merged with Hermez Network in a $250million deal. In the deal, Polygon will absorb Hermez into its ecosystem. It will integrate the whole network from employees to technology and native HEZ tokens. This is the first deal where a blockchain completely merges into another network. Hermez will operate under the name Hermez Polygon as it joins other products in the same line like Polygon Avail and Polygon SDK.
The improvement that comes with Polygon forming the DAO means it will have to transition from the current PoS to become a cross-chain protocol.
Is this the right move for Polygon?
Polygon has grown from a small Ethereum-based scaling solution to one of the most crucial solutions in the crypto world due to the various developmental projects. It is always looking for ways to reach more people while enabling other crypto projects. This is evident from its previous collaborations.
By forming DAO for DeFi, Polygon is having a futuristic look on the crypto market. A recent report by Consensys established that the 20 largest DAOs hold a combined $20B of digital assets.
Following the DeFi boom of the previous year, most people are more familiar with decentralised finances. In the future, no one would be inconvenienced by the traditional financial systems when they can access similar services from the blockchain network.
That is to say, forming DAO is the best move for Polygon.
Should you invest in Polygon?
If you are looking for an ideal crypto to trade, Polygon(MATIC) is the right one for you. The coin currently ranks at 22 according to market cap and trades at $1.37. It is on a bullish run that looks to stay on a similar path following the crypto market movements.
The other reason to invest in Polygon is for long term holding. It will keep growing in value as DeFi becomes the most preferred financial solution over the traditional institutions.
