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Polygon Network Contemplating the Idea of Creating DAOs

Godfrey Benjamin   Aug 20, 2021 07:00 2 Min Read


Polygon Network, a blockchain startup focusing on developing Ethereum scalability solutions, has expressed its willingness to create a Decentralized Autonomous Organization (DAO) model of harmonising communications amongst its growing community.

As revealed in a blog post, the protocol is seeking comments from its community members on the right option for the protocol as it looks to make decentralise its decision-making system for the benefit of all.

Polygon said the model of communication or proposing changes in a DeFi protocol that is typically controlled by smart contracts takes two forms. One, by forming a committee or council members as in the case of Synthetix Network Token (SNX), MakerDAO, and IndexCoop amongst others, and two, by a DAO in which all token holders are involved in the decision making process. Top protocols that explore this option includes Compound, Badger, BarnBridge.

The proposal from Polygon may draw on both models, in which committees will be created to bring about a unifying discourse on projects built atop the blockchain with common interests. These committees will be placed on a short tenure and will be tasked with proposing at least a major change, failure of which can lead to the member's expulsion. There will be rewards for the serving members of this committee.

"As the Polygon ecosystem grows, the committee members have a front-seat opportunity over others to increase cross-collaboration for their products,” said the platform

Per the proposal, the broader community with staked network or governance tokens will be tasked with voting the community members to guarantee fairness via decentralisation.

“As the Polygon ecosystem grows, the committee members have a front-seat opportunity over others to increase cross-collaboration for their products,” said the project. “Voting for elections of new members could be implemented in multiple ways like by using staked MATIC on PoS or via the DAO token holders.”

The idea of DAOs is becoming commonplace in the cryptocurrency ecosystem today. While the framework is not fully developed to bolster their proliferation, projects have been getting much backing from investors and the broader cryptocurrency ecosystem. There has also been a growing clamour for regulations to extend to these new offshoots of blockchain technology.


Image source: Shutterstock

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