Polygon’s $3.7bn MATIC token is getting a new name as the strategy changes

A version of this article appeared in Us Decentralization Newsletter on September 03. Sign up Here.

Contents

MATIC migrates Cardano’s new regime MakerDAO will sky Weekly data This week on DeFi Governance Post of the week What we see

GM, Tim Here.

Here’s what caught my DeFi-eye recently:

Polygon’s MATIC token is getting a new name. Cardano’s Chang hard fork goes live.MakerDAO’s Sky rebrand sparks controversy.

MATIC migrates

Polygon’s $3.7 billion token is getting a new name.

On Wednesday, MATIC, the native token on Polygon’s flagship blockchain of the same name, will switch to POL.

🧵 POL Upgrade | Everything you need to know 🧵With MATIC on Ethereum users can upgrade today through the Polygon portal interface: https://t.co/Ibs1ONels1There is no deadline for users to upgrade. All MATICs in Polygon PoS & Staked MATICs on Ethereum will automatically upgrade on September 4th. pic.twitter.com/qKnyYFrlqH

— polygon | Polygon (@0xPolygon) August 27, 2024

Polygon launched MATIC in 2019 when the ecosystem consisted of only the MATIC blockchain.

Polygon has launched another blockchain called zkEVM and is also building what it calls AggLayer – A new approach to scaling blockchains.

The new POL token represents the entire Polygon ecosystem and “provides valuable services” to the network, Polygon said in a statement. Blog post Explains the transition.

Join the community to get our latest articles and updates

However, Polygon has yet to reveal what those services will be.

Polygon recently shifted its marketing strategy away from big brand partnerships to attract more crypto-local consumers.

MATIC’s renaming — and its emphasis on Polygon’s broader DeFi ecosystem — seems to have factored into this shift.

Cardano’s new regime

Cardano became the first major blockchain to allow its token holders to weigh in on governance.

At 10:44pm London time on Sunday, the blockchain completed its long-awaited Chang hard fork, introducing a new governance system.

ADA holders can now entrust their tokens to so-called DReps, who will participate in Cardano governance on their behalf.

Cardano’s development was previously handled by Charles Hoskinson’s blockchain engineering firm, Input Output Global, the Cardano Foundation, and Emergo, Cardano’s official commercial arm.

Proponents say the move will make Cardano more decentralized and more attractive to organizations looking to dip their toes into DeFi.

But token-based governance is difficult to get right.

A similar form of governance, known as decentralized autonomous organizations – or DAOs – has received criticism.

Opponents say many DAOs have excessive budgets, suffer from inadequate checks and balances, and are controlled by a few powerful stakeholders.

MakerDAO will sky

DeFi lender MakerDAO has moved to Sky, the latest step in co-founder Rune Christensen’s so-called endgame plan.

But reception has been mixed.

The most controversial change is that USDS, a new version of the DAI stablecoin, has a freeze function in its code, giving Sky the discretion to freeze USDS transfers from holders’ wallets.

Christensen has since addressed the issue, assuring users that the unfreeze version of DAI will continue even after the USDS transition.

Others have Criticized Sky’s lack of innovation in recent years.

“This announcement must be some kind of joke,” said Noor Haridi, founder of DeFi protocol Inverse Finance Said in X.

“The only new feature provided by this ‘upgrade’ is the ability to freeze your tokens.”

Phoenix Labs CEO Sam MacPherson Hit backIt is argued that Sky revenues are at an all-time high thanks to the protocol decisions.

Phoenix Labs is a research and development company spun off from Sky.

Weekly data

Symbiosis is shaping up to be part of the Ethereum restaking market.

There are deposits increased by 41% Its competitors have seen major drifts in the past month. Since the protocol’s June launch, it has attracted $1.6 billion.

Coexistence fared better than Karak, another restaking protocol looking to enter the market.

But Symbiote still pales in comparison to the $11 billion restocking behemoth Eigenlayer.

Renewal of Protocol Deposits. (@blacklytics)

This week on DeFi Governance

Vote: Aave to onboard USDS, the rebranded DAI token

Proposal: Threshold proposes to buy $36 million of WBTC from BitGo

Vote: Lido DAO is ready to accept the ‘BORG’ wrapper for its alliance program

Post of the week

A security researcher with the pseudonym Czar102 has announced blueprints designed to make DeFi more interconnected.

🎉 I’m excited to announce the concept blueprints I’ve been thinking and working on for a long time. It’s a free piece of infrastructure for anyone to build. No ownership, no governance, no token. See my post “Blueprints – DeFi Composability Endgame”:…

— Czar102 (@_Czar102) September 2, 2024

What we see

The Ethereum Foundation releases an update on its 2024 grant funding allocation.

Grants funded last quarter are getting attention 🎯 Check out our Allocation Update: Q2 2024 blog post for the full rundown! https://t.co/ipKbstK4mE

— EF Ecosystem Support Program (@EF_ESP) August 30, 2024

Grants funded last quarter are getting attention 🎯 Check out our Allocation Update: Q2 2024 blog post for the full breakdown! https://t.co/ipKbstK4mE