Regulation
Polygon Unveils $720 Million Blockchain Development Grants
Polygon, a blockchain scalability platform, announced the creation of a $720 million community treasury aimed at fostering growth and innovation in the blockchain space over the next decade.
This strategic move is designed to support developers working on the Polygon and Ethereum ecosystems, reflecting a significant commitment to improving the reach and utility of blockchain technology.
The newly created Community Treasury, developed through community consensus, is expected to distribute approximately 100 million Polygon ecosystem tokens (POL) per year. This initiative will total up to one billion POL tokens distributed over the next ten years.
The inaugural allocation includes 35 million initial Polygon tokens, worth approximately $25 million, earmarked for the first season of the Community Grants Program (CGP).
This season, the CGP introduces two distinct tracks for developers: the General Grant Track and the Consumer Crypto Track. The General Grant Track, open to all applicants without strict restrictions on project eligibility, focuses on several key areas.
Polygon has expressed particular interest in projects involving decentralized applications (DApps), development tools, libraries and protocol infrastructure. On the other hand, the Consumer Crypto Track specifically aims to support innovative blockchain applications intended for everyday use, aimed at developers, creators and entrepreneurs.
Sandeep Nailwal, co-founder of Polygon
Ajit Tripathi, Polygon Community Treasure board member, highlighted the inclusive nature of the first season of the CGP, highlighting the wide range of projects welcomed under general grants and the focus on blockchain applications focused on the consumer in the context of the mainstream cryptography sector.
Two avenues for developers: general grants and mainstream cryptography
The application process for the inaugural season is currently open and applications are being accepted until August 31. To be eligible, projects must be built on or willing to migrate to the Polygon platform, and they must demonstrate potential for long-term viability.
Grants will vary in size, from 5,000 to over 50,000 MATICs, and will be overseen by the Community Treasury Board, which conducts monthly reviews and project selection.
It is important to note that the Polygon Community Treasure operates independently of Polygon Labs and other associated entities. Governed by a framework that encourages community participation, the treasury is designed to provide sustainable economic support to drive development and growth within the Polygon ecosystem.
This initiative follows Polygon’s recent advances in zero-knowledge technology, particularly the development of pessimistic proofs designed to ensure the security of deposits on different chains in the AggLayer network. This technology enhancement aligns with Polygon’s broader strategy to solidify its position as a leading Ethereum scaling solution.
Polygon’s technological advances in zero-knowledge technologies
The announcement of the Community Treasury coincides with a period of growing activity and interest in the Polygon network. Recently, the network has seen a surge in popularity, surpassing Ethereum in terms of gas consumption and monthly active users.
This uptick in activity suggests that users are increasingly attracted to Polygon for its lower transaction fees and faster processing times, which could potentially impact Ethereum’s adoption rate. However, as a layer 2 solution, Polygon’s success could ultimately support and improve the Ethereum ecosystem.
Despite the network’s operational success and growing popularity, the price of Polygon’s native token, MATIC, has seen fluctuations. After a period of sideways movement in its price, MATIC observed a sharp decline on June 6 when it fell to $0.7413.
The token has attracted interest from both large-scale investors (whales) and retail participants, indicating a broad base of support despite pricing challenges.
Polygon continues to be a key player in the decentralized finance (DeFi) sector, with its Proof of Stake (PoS), zero-knowledge Ethereum Virtual Machine (zkEVM), and Coconut SDK (CDK) emerging as tools popular among DeFi. developers.
This sustained focus on developing robust and user-friendly blockchain solutions is at the heart of Polygon’s strategy to maintain and expand its influence within the blockchain community.