In the first half of 2023, something exciting happened - Kassandra was launched on the Polygon PoS blockchain. This allowed the community to create managed pools and use a bunch of new assets for their investment strategies.
In this article, we'll explore Polygon and its token MATIC, which is whitelisted on Kassandra and available for managers to invest in it.
What is Polygon?
Polygon is a crypto project specifically built to address the scalability issues of Ethereum. Its initial product, formerly known as Matic Network and now referred to as Polygon PoS, functions as a Sidechain. This means it operates as a parallel blockchain alongside Ethereum, employing its own consensus mechanism and handling transactions more efficiently in terms of speed and cost.
Polygon's seamless compatibility with Ethereum has made it a popular choice for numerous projects seeking to enhance the user experience for retail users. By integrating with Polygon, these projects offer a more affordable alternative to the high fees associated with using the Ethereum blockchain.
How does Polygon Work?
Polygon aims to improve the speed and affordability of Ethereum. It achieves this by creating a separate blockchain that connects to the main Ethereum network. This parallel blockchain uses a proof-of-stake system, allowing people to earn rewards by staking their MATIC tokens on the Ethereum mainnet (unlike other EVM blockchains, Ethereum validators can check for the correctness of the block production process).
Validators play a vital role in the process. They validate transactions and add them to the blockchain, receiving fees and new MATIC tokens as rewards. Validators need to be cautious since making mistakes or acting improperly could result in losing some of their staked MATIC, a process known as Slashing.
For those who prefer a less hands-on approach, they can delegate their MATIC to a trusted validator. Although this is a lower-commitment option, users must still be careful when selecting a reliable validator to avoid any potential losses.
In summary, Polygon's design optimizes Ethereum's performance, leveraging a proof-of-stake system and validator network to create a faster, more cost-effective ecosystem. By providing both staking and delegation options, Polygon enhances accessibility and usability for users seeking to participate in its blockchain activities.
The token MATIC is the utility token of the Polygon blockchain. Through MATIC, users pay for gas fees to send transactions and interact with smart contracts and validators also use it to Stake and secure the network.
There are 10 Million tokens as the Maximum Supply, and the distribution is the following:
Polygon has announced a governance proposal to migrate to a Polygon 2.0 version. This would change the MATIC token to POL and modify its supply and utility making it available in other platforms developed by Polygon Labs.
The team behind Polygon managed to raise money in a couple of funding rounds that have significantly contributed to its growth and development.
Seed Round (April 2019): In the initial Seed Round, Polygon managed to raise $165,000 from investors. The average price per token during this round was $0.00079.
Early Supporters (April 2019): The project garnered substantial support from early backers, raising $440,000 with an average token price of $0.0026.
Initial Exchange Offering (IEO) (April 2019): In the IEO, Polygon successfully secured $5 million in funding at an average token price of $0.0026.
Funding Round (February 2022): In a remarkable milestone for the project, Polygon raised a staggering $450 million during the Funding Round conducted in February 2022.
When it comes to making Ethereum faster and better, there are many projects working on it, and Polygon is definitely one of the projects worth considering.
If you're interested in getting involved with Polygon or its ecosystem, check out the pools available on Kassandra!
The Polygon Ecosystem keeps track of the most active projects in the Polygon ecosystem. There are also other community pools on the Polygon blockchain to explore! Don't miss the chance to be part of Polygon's exciting community!
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