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)
    1. For staking
    2. Transaction approvals
    3. Interact with Ethereum and other chains
  2. Security Layer (optional layer)
    1. Alongside Ethereum to provide validator services
  3. Polygon Networks Layer
    1. 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
    1. AKA Polygon’s Ethereum Virtual Machine (EVM)
    2. 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