The snapshot below is a quick analysis of the Polygon ecosystem, product market fit, traction, market, governance and tokenomics. In this snapshot I articulate the positives and negatives of a potential investment in the $MATIC liquid token. Read on!

• Price: $0.8757

• FDMC: $8,778,154,275

• 24H Volume: $8,778,154,275

• Contract Address

• Value Proposition: Enables developers to build scalable user-friendly dApps with low transaction fees without ever sacrificing on security. Benefits from Ethereums platform and network effects while being inherently more efficient and secure.

• Target User: Developers of Web3 Protocols looking to scale their Ethereum-based solutions

• Product Description: A decentralized Ethereum scaling platform that combines the best of Ethereum and sovereign blockchains into a full fledgedmulti-chain system. Key offerings include:

  • Polygon PoS: Ethereum Virtual Machine - compatibleEthereum sidechain. Secured by a network of PoS validators. 1.3 Bn Transactions recorded, 130M UAW and 2.7M MAUs. (Live)

  • Polygon Edge: Modular extensible framework for building private/public Ethereum compatible blockchain networks (Live)

  • Polygon Nightfall (Beta Live)

• Roadmap:

  • Polygon zkEVM//Hermez: Open source zero knowledge rollup that allows for ecure, low-cost usable token transfers on top of Ethereum. Security guaranteed thru zk-SNARKs, 2000 TPS, non-custodial web and mobile wallets, atomic swaps, single currency fee structures and fast withdrawals. Results in 133x thoroughput improvement, 90% oken transfer cost reduction. (In Development)

  • Polygon Avail: A modular blockchain that records transactiondata for other blockchains so they don’t have to (In Development)

  • Polygon Zero: Uses the speed of Plonky2 to enable a more scalable and decentralized ZK L2. It offers both rollup and validium modes, giving users access to higher throughput and lower fees (In Development)

  • Polygon Miden (In Development)

• Backers:

  In early February, Polygon reached a milestone when it raised about $450 million from some of the world’s biggest venture capitalists…

  The funding round was led by Sequoia Capital India with participation from storied VCs including Tiger, SoftBank and Galaxy Digital, crypto-native funds like Variant and Republic, and prominent individual investors like Kevin O’Leary - Techcrunch

• Compatible Wallets: Metamask, Ledger, Trust Wallet, Binance Chain Wallet

• Number of Ecosystem dApps: 1510

• Top Projects integrated with: Aave, Uniswap V3, OpenSea, Lazy.com, DraftKings, The Sandbox

*

• Transactions since Inception: 3.4B+

• Daily Transactions: 3M+

• Unique Users: 130M+

Trends:

• Consumer disatisfaction with high transaction fees on L1s

• Need for improved security without relying on L1 bridges

Competitors:

• Arbitrum

  • Total Users: 1,030,683

  • Total Transactions: 22,304,450

• Optimism

  • Total Users: 566,895

  • Total Transactions: 21,921,133

• StarkNet

  • Total Users: 24,395

  • Total Transactions: 30,805

• zkSync

  • Total Users: 350,017

  • Total Transactions: 534,136

One of the strongest signals that the Web3 era is upon us came when Ryan Wyatt left Google for Polygon. Wyatt, who for the past seven years helmed YouTube’s gaming operations, is now leading Polygon Studios  in its push to grow the Web3 game developer ecosystem. Other hires hail from some of the world’s biggest tech companies including Microsoft, Amazon, Bloomberg, and Electronic Arts. - Polygon

Although the formation of a governance DAO is currently being explored by the Polygon team, for now its functioning, maintenance and future development will be coming from its core team. Key team members listed below:

Core Members:

• Jaynti Kanani, Co-Founder of Polygon

• Sandeep Nailwal, Co-Founder of Polygon

• Anurag Arjun, Co-Founder of Polygon

• Mihailo Bjelic, Co-Founder of Polygon

• David Schwartz, Co-Founder of Polygon ID & Polygon Hermez

• Jordi Baylina, Co-Founder of Polygon ID & Polygon Hermez

• Antoni Martin, Co-Founder of Polygon ID & Polygon Hermez

• Brendan Farmer, Co-Founder of Polygon Zero

Advisors:

• Hudson Jameson, Ethereum Foundation

• Ryan Sean Adams, Bankless

• Anthony Sassano, EthHub

• Pete Kim, Coinbase

• John Lilic, ex ConsenSys

• Mark Cuban, Mark Cuban Companies

Maximum Total Supply: 10,000,000,000 $MATIC

Circulating Supply: 8,040,000,000 $MATIC

Mint: No mint method is indicated

Burn: Recently launched its own version of EIP-1559, which essentially means that a portion of transaction fees paid by users to use the network will be burned out of circulation. Therefore, with increased adoption, increased transaction volumes will lead to increased $MATIC burn volumes.

Staking Method: PoS. Rewards are distributed equally. Users get to earn 6.58% APR on staked $MATIC. Users can either run a validator node (units on the Polygon blockchain that validate transaction blocks) or become delegators (delegate tokens to a validator node).

Rewards Distributed to Date: $527.43M

Current Token Distribution:

Token Release Schedule:

Utility:

1. Participating in Proof of Stake consensus. When users stake $MATIC tokens they are allowed to act as validators (PoS)

2. Receiving staking rewards

3. Payment of network transaction fees.

• Value Proposition - Compelling value proposition, since most smart contract applications are built on the Ethereum L1, but suffer from scalability issues. Core proposition is to pay less for transacting.

• Product - Strong product offering, ever expanding into new sectors of the blockchain infrastructure space. Heavy investment in developing applications of zk proofs. Key standout is Polygon Zero with its Plonky2 zk proof algorithm.

• Traction - Backed by major VC Institutions (Sequoia India, Coinbase Ventures, Tiger, Softbank), has integrated with major Ethereum projects: Aave, Uniswap V3, OpenSea, Lazy.com, DraftKings, The Sandbox. User base has seen consistent growth even throughout the bear market of early 2022. Daily transactions +3M, unique users +130M.

• Market - Consumer disatisfaction with high transaction fees on L1s and need for improved security without relying on L1 bridges drive growth in the space. Polygon overwhelms its closest competitor in TVL and User base by multiples.

• Governance - Solid team with backgrounds from Big Tech, Venture and key ecosystem players the likes of the Ethereum Foundation, Bankless and Coinbase.

• Tokenomics - Tokens utility is concrete as a staking token to reward validators and delegators in the PoS network. Initial distribution of the token is equally split with the founding team owning a mere 16%. Token Lockup period is ending, by the end of 2022 100% of all MATIC tokens will be unlocked and circulating. These are all good signals for the price volatility of MATIC

• Tokenomics - The EIP-1559 Burning mechanism selected is dependent on network demand. With the increased expansion in the Polygon network, node validators are relying solely on validation fees to stay profitable as fractions of the transaction fees are burned by EIP-1559. This is a risk as if the profitability of validating data on the network goes down, fees will go up and users will move to cheaper networks.

• Obsolence Risk - The release of ETH 2.0 later this year attempts to solve the speed, security and gas fee issues associated with the ETH 1.0. This is a threat to the Polygon network as one of its core offerings is the Polygon PoS Sidechain which offers faster, cheaper and safer transactions on top of ETH 1.0. However, this risk is set to be addressed by continuous innovation in the ZK proof space, which is set to cement Polygon as one of the top ecosystem players in zero knowledge proofing.

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4. Read the Disclaimer below

This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer by me or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

The snapshot below is a quick analysis of the Polygon ecosystem, product market fit, traction, market, governance and tokenomics. In this snapshot I articulate the positives and negatives of a potential investment in the $MATIC liquid token. Read on!

• Price: $0.8757

• FDMC: $8,778,154,275

• 24H Volume: $8,778,154,275

• Contract Address

• Value Proposition: Enables developers to build scalable user-friendly dApps with low transaction fees without ever sacrificing on security. Benefits from Ethereums platform and network effects while being inherently more efficient and secure.

• Target User: Developers of Web3 Protocols looking to scale their Ethereum-based solutions

• Product Description: A decentralized Ethereum scaling platform that combines the best of Ethereum and sovereign blockchains into a full fledgedmulti-chain system. Key offerings include:

  • Polygon PoS: Ethereum Virtual Machine - compatibleEthereum sidechain. Secured by a network of PoS validators. 1.3 Bn Transactions recorded, 130M UAW and 2.7M MAUs. (Live)

  • Polygon Edge: Modular extensible framework for building private/public Ethereum compatible blockchain networks (Live)

  • Polygon Nightfall (Beta Live)

• Roadmap:

  • Polygon zkEVM//Hermez: Open source zero knowledge rollup that allows for ecure, low-cost usable token transfers on top of Ethereum. Security guaranteed thru zk-SNARKs, 2000 TPS, non-custodial web and mobile wallets, atomic swaps, single currency fee structures and fast withdrawals. Results in 133x thoroughput improvement, 90% oken transfer cost reduction. (In Development)

  • Polygon Avail: A modular blockchain that records transactiondata for other blockchains so they don’t have to (In Development)

  • Polygon Zero: Uses the speed of Plonky2 to enable a more scalable and decentralized ZK L2. It offers both rollup and validium modes, giving users access to higher throughput and lower fees (In Development)

  • Polygon Miden (In Development)

• Backers:

  In early February, Polygon reached a milestone when it raised about $450 million from some of the world’s biggest venture capitalists…

  The funding round was led by Sequoia Capital India with participation from storied VCs including Tiger, SoftBank and Galaxy Digital, crypto-native funds like Variant and Republic, and prominent individual investors like Kevin O’Leary - Techcrunch

• Compatible Wallets: Metamask, Ledger, Trust Wallet, Binance Chain Wallet

• Number of Ecosystem dApps: 1510

• Top Projects integrated with: Aave, Uniswap V3, OpenSea, Lazy.com, DraftKings, The Sandbox

*

• Transactions since Inception: 3.4B+

• Daily Transactions: 3M+

• Unique Users: 130M+

Trends:

• Consumer disatisfaction with high transaction fees on L1s

• Need for improved security without relying on L1 bridges

Competitors:

• Arbitrum

  • Total Users: 1,030,683

  • Total Transactions: 22,304,450

• Optimism

  • Total Users: 566,895

  • Total Transactions: 21,921,133

• StarkNet

  • Total Users: 24,395

  • Total Transactions: 30,805

• zkSync

  • Total Users: 350,017

  • Total Transactions: 534,136

One of the strongest signals that the Web3 era is upon us came when Ryan Wyatt left Google for Polygon. Wyatt, who for the past seven years helmed YouTube’s gaming operations, is now leading Polygon Studios  in its push to grow the Web3 game developer ecosystem. Other hires hail from some of the world’s biggest tech companies including Microsoft, Amazon, Bloomberg, and Electronic Arts. - Polygon

Although the formation of a governance DAO is currently being explored by the Polygon team, for now its functioning, maintenance and future development will be coming from its core team. Key team members listed below:

Core Members:

• Jaynti Kanani, Co-Founder of Polygon

• Sandeep Nailwal, Co-Founder of Polygon

• Anurag Arjun, Co-Founder of Polygon

• Mihailo Bjelic, Co-Founder of Polygon

• David Schwartz, Co-Founder of Polygon ID & Polygon Hermez

• Jordi Baylina, Co-Founder of Polygon ID & Polygon Hermez

• Antoni Martin, Co-Founder of Polygon ID & Polygon Hermez

• Brendan Farmer, Co-Founder of Polygon Zero

Advisors:

• Hudson Jameson, Ethereum Foundation

• Ryan Sean Adams, Bankless

• Anthony Sassano, EthHub

• Pete Kim, Coinbase

• John Lilic, ex ConsenSys

• Mark Cuban, Mark Cuban Companies

Maximum Total Supply: 10,000,000,000 $MATIC

Circulating Supply: 8,040,000,000 $MATIC

Mint: No mint method is indicated

Burn: Recently launched its own version of EIP-1559, which essentially means that a portion of transaction fees paid by users to use the network will be burned out of circulation. Therefore, with increased adoption, increased transaction volumes will lead to increased $MATIC burn volumes.

Staking Method: PoS. Rewards are distributed equally. Users get to earn 6.58% APR on staked $MATIC. Users can either run a validator node (units on the Polygon blockchain that validate transaction blocks) or become delegators (delegate tokens to a validator node).

Rewards Distributed to Date: $527.43M

Current Token Distribution:

Token Release Schedule:

Utility:

1. Participating in Proof of Stake consensus. When users stake $MATIC tokens they are allowed to act as validators (PoS)

2. Receiving staking rewards

3. Payment of network transaction fees.

• Value Proposition - Compelling value proposition, since most smart contract applications are built on the Ethereum L1, but suffer from scalability issues. Core proposition is to pay less for transacting.

• Product - Strong product offering, ever expanding into new sectors of the blockchain infrastructure space. Heavy investment in developing applications of zk proofs. Key standout is Polygon Zero with its Plonky2 zk proof algorithm.

• Traction - Backed by major VC Institutions (Sequoia India, Coinbase Ventures, Tiger, Softbank), has integrated with major Ethereum projects: Aave, Uniswap V3, OpenSea, Lazy.com, DraftKings, The Sandbox. User base has seen consistent growth even throughout the bear market of early 2022. Daily transactions +3M, unique users +130M.

• Market - Consumer disatisfaction with high transaction fees on L1s and need for improved security without relying on L1 bridges drive growth in the space. Polygon overwhelms its closest competitor in TVL and User base by multiples.

• Governance - Solid team with backgrounds from Big Tech, Venture and key ecosystem players the likes of the Ethereum Foundation, Bankless and Coinbase.

• Tokenomics - Tokens utility is concrete as a staking token to reward validators and delegators in the PoS network. Initial distribution of the token is equally split with the founding team owning a mere 16%. Token Lockup period is ending, by the end of 2022 100% of all MATIC tokens will be unlocked and circulating. These are all good signals for the price volatility of MATIC

• Tokenomics - The EIP-1559 Burning mechanism selected is dependent on network demand. With the increased expansion in the Polygon network, node validators are relying solely on validation fees to stay profitable as fractions of the transaction fees are burned by EIP-1559. This is a risk as if the profitability of validating data on the network goes down, fees will go up and users will move to cheaper networks.

• Obsolence Risk - The release of ETH 2.0 later this year attempts to solve the speed, security and gas fee issues associated with the ETH 1.0. This is a threat to the Polygon network as one of its core offerings is the Polygon PoS Sidechain which offers faster, cheaper and safer transactions on top of ETH 1.0. However, this risk is set to be addressed by continuous innovation in the ZK proof space, which is set to cement Polygon as one of the top ecosystem players in zero knowledge proofing.

1. Connect with me on Twitter

2. Connect with me on LinkedIn

3. Subscribe to my mirror.xyz newsletter

4. Read the Disclaimer below

This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer by me or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.