Polygon

Polygon

What is it?
  • Layer 2 scaling solution
  • commit chain to the main chain
  • groups clusters of transactions and processes them all together beofre sending back to the Ethereum chain
    • Takes a snapshot every now and than so it processes less data
  • Series of blockchains that help scale Ethereum
  • proof of stake
  • equips devs with user friendly and flexible tools
  • devs can create all kinds of scaling solutions:
    • zk rollups
    • optimistic rollups
    • etc.
  • Basically ethereum with super cheap gas fees
How does it function?

It currently runs on a four layer system

  1. Ethereum Layer (optional layer)
    • For staking
    • Transaction approvals
    • Interact with Ethereum and other chains
  2. Security Layer (optional layer)
    • Alongside Ethereum to provide validator services
  3. Polygon Networks Layer
    • Ecosystem of projects or blockchain networks developed on Polygon
      • Every project or blockchain networks can have its own community within the ecosystem
  4. Execution Layer
    • AKA Polygon’s Ethereum Virtual Machine (EVM)
    • Main function to execute smart contracts on the actualy Polygon Blockchain
      • This smoothens the user experience for developers and programmers using the Ethereum chain
Tokenomics
  • Market Cap: 13 Billion
  • 10 Billion tokens
  • 6.8 billion in circulation
    • Dev team has 16%
    • Advisors have 4%
    • Staking Rewards 12%
    • Ecosystem is 23%
    • Polygon Foundation 22%
  • Inflationary
    • Will implement EIP-1559 (Jan 18)
      • This makes Polygon Deflationary
        • Base transaction fees are burned
  • Extra transaction fees users prioritize will be eventually be enough to incentivize staking validators