- Polygon (MATIC) Labs has unveiled three proposals in line with planned governance changes in its new roadmap.
- The proposals aim to set up and manage a community treasury to facilitate sustainable ecosystem growth.
- The proposals are the latest step in Polygon’s grand plan of connecting everything to Ethereum.
Polygon (MATIC) is undergoing a massive overhaul.
In 2023, Polygon Labs, the developers of the eponymous Ethereum scaling solution, unveiled a new roadmap to become the value layer of the decentralized web by supporting a network of zero-knowledge-powered chains that share security and liquidity with Ethereum. In line with this new roadmap, the team has proposed several big changes to the Polygon (MATIC) network.
Among these planned changes is a governance overhaul to accommodate the planned ecosystem expansion. In October 2023, Polygon Labs took the first step in this direction with a proposal to introduce a protocol council to oversee smart contract upgrades. Now, the team is setting the stage for the next component with proposals to set up and manage a community treasury for sustainable ecosystem growth.
In July 2023, Polygon Labs unveiled “three governance pillars” to simplify and organize the governance process of the envisioned multichain Polygon (MATIC) ecosystem. The last pillar outlined by the team was “community treasury governance.” The idea? Create a system to manage a fund to incentivize the growth of projects within the ecosystem. This fund, dubbed the community treasury, was created as a percentage of the supply of MATIC’s proposed replacement POL.
In line with creating the aforementioned system, on Thursday, April 11, Polygon Labs submitted three proposals: two towards setting up a Community Treasury Board to oversee the fund and one towards setting up a Polygon Funding Proposal (PFP) framework.
Polygon Labs has nominated five members for the Community Treasury Board based on their alignment with and understanding of the ecosystem. These proposed inaugural members include Quickswap founder Roc Zacharias, Coinbase Wallet creator Peter Kim, and SheFi founder Maggie Love. Among other things, they will be saddled with the responsibility of developing a strategy for the treasury and having the ultimate say in its allocation.
On the other hand, the proposed PFP framework aims to offer a streamlined and transparent process for funding applications and grants. The PFP process is made up of multiple stages. These stages are proposal, review, acceptance, rejection, and archival.
Polygon’s Ambitious Vision
The recently proposed governance changes are the latest step in Polygon’s bold plan towards connecting everything to Ethereum, not just Layer 2 chains built with its software development kit, the CDK. As recently highlighted by Polygon co-founder Mihailo Bjelic, the team does not believe any chain is out of reach.
In line with this ambition, the team has launched and is launching several tools to bootstrap the process of launching and transitioning to Ethereum Layer 2 chains. These tools include the CDK, a zkWASM prover, and a Type 1 zkEVM prover. To connect it all, Polygon recently launched an interoperability protocol called the AggLayer.
On the Flipside
- The recent governance proposals are not final. They could change during the community review process.
Why This Matters
Governance is critical to the long-term sustainability of crypto projects. One of the pain points in governance is how funds are managed. The recent Polygon Labs governance proposals hope to set the foundation for managing community funds in the expanded Polygon ecosystem.
Read this for more on Polygon’s governance revamp:
Polygon Launches 2.0 Governance Revamp with Protocol Council
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