What is Polygon?
Polygon is a multi-chain Layer 2 scaling solution for Ethereum. The network enables developers to create highly-scalable and efficient decentralized applications (dApps) in a secure and decentralized environment. Polygon’s architecture is designed to be flexible, modular, and developer-friendly, making it an ideal choice for businesses and projects seeking to leverage the power of blockchain technology. Polygon PoS relies on a Proof-of-Stake (PoS) consensus mechanism, which allows validators and delegators to stake the native Polygon token, MATIC, to participate in the network’s security and earn rewards.
What Problems Does Polygon Solve?
Polygon’s suite of scaling solutions for Ethereum encompasses optimistic rollups, zk-rollups, zk-technologies, validiums, and modular blockchain creation. These solutions are designed to address the scalability issues interacting with Ethereum. Polygon empowers developers and users with a wide range of options to meet their specific needs, whether it’s faster transactions, lower transaction fees or enhanced privacy. The ultimate goal is to create a comprehensive and interconnected ecosystem that fosters innovation, collaboration, and growth.
Polygon’s MATIC Token:
The MATIC token is the native token of the Polygon ecosystem and plays a critical role in securing the network, participating in governance, and facilitating various operations within the platform.
MATIC token use cases:
- Network Security: MATIC is used in the Proof of Stake (PoS) consensus mechanism, where validators stake their tokens to secure the network, propose and validate new blocks, and maintain the integrity of the Polygon blockchain. By staking their tokens, validators are rewarded with MATIC tokens as an incentive for their participation and contribution to the network’s security.
- Transaction Fees: MATIC is used to pay transaction fees within the Polygon ecosystem.
- Governance: MATIC tokens also play a crucial role in the governance of the Polygon ecosystem, giving stakers the ability to participate in decision-making processes and influence the development and direction of the platform. This decentralized governance model ensures that the Polygon community has a say in the evolution of the network.
- Interoperability: MATIC tokens can be used across various Layer 2 solutions within the Polygon ecosystem, providing a seamless experience for users and developers.
MATIC’s diverse utility makes it a valuable asset within the Polygon blockchain and contributes to the overall growth and adoption of the platform.
Broader Polygon Adoption
Over the past year, Polygon has been a platform at the forefront of adoption and has rapidly amassed several partnerships from some of the largest corporations in the world. Polygon’s platform is in a phase of growth and adoption despite broader market conditions.
Starbucks integrated with Polygon for Starbucks Odyssey (their reward program which uses NFTs). Starbucks Odyssey gives users the option to sell the Starbucks NFT stamps on secondary markets.
Polygon partnered with Meta in order to offer Instagram users the ability to mint, sell, and display NFTs. The Polygon powered integration allows influencers to monetize NFT creations and allows fans to display their collectibles.
Nike has an integration with Polygon their upcoming NFT platform called “.Swoosh” which is “designed to spotlight the brand’s NFTs and virtual apparel initiatives” according to Decrypt.
Other large companies such as Reddit have used Polygon to create Reddit collectible avatars which, as of 27th February, have minted 10,615,730 Reddit collectible avatars. Collectible avatars have also been the highest-ever Reddit collectible avatar selling for $40,472.
Polygon’s Stats & Growth Metrics
Polygon recently hit a new milestone with over 1.9 million new wallets interacting with social media dApps on mainnet. To put this into perspective, this increase in new wallet interactions is more than Ethererum itself and side chains such as Gnosis and Optimism. This increase, specifically for social media interactions, is likely due to Polygon’s partnership integrations with Meta, Starbucks, and more.
Additionally, Polygon has consistently had more daily active transactions than Ethereum, processing almost 3 times the amount of transactions in the whole of January, and as of 24 February 2023 there were 2,832,891 daily Polygon transactions compared with 1,095, 771 daily Ethereum transactions.
Despite the bear market, unique addresses on Polygon have swung from strength to strength with 221,323,829 total unique wallet addresses as of February 25, 2023. Polygon has proven to be one of the most widely used Ethereum scalability platforms supporting and assisting Ethereum’s mass adoption.
Polygon’s developer count across all spectrums has increased dramatically year on year, as demonstrated by the following metrics:
- During the 3 years prior to December 15, 2022, Polygon grew +2,245% in terms of total monthly active developers.
- During the 3 years prior to December 15, 2022, Polygon grew +1,105% in terms of full-time developers
- During the 3 years prior to December 15, 2022, Polygon grew +3,453% in terms of part-time developers
- During the 3 years prior to December 15, 2022, Polygon grew +2,386% in terms of one-time developers
More information regarding development and developer metrics can be found in Electric Capital’s 2022 developer report or on the Polygon Developer Report Dashboard.
Staking Polygon with Figment
If you are interested in staking Polygon’s native MATIC token, Figment offers a host of services aimed at delivering safe and reliable staking rewards for your assets. Figment is the world’s leading provider of blockchain infrastructure. Our 200+ institutional clients rely on Figment to provide best in class staking services including seamless and easy integrations, complete staking coverage, detailed rewards reporting, insights, and more.
Figment’s Protocol team has extensive Polygon knowledge intended to help dive into the specifics such as upgrades and staking information. Contact us at firstname.lastname@example.org to learn more about staking MATIC.