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1.4 billion MATIC locked in- Here’s what could follow next

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1.4 billion MATIC locked in; here's how people are reacting to Polygon's decision
Source: Pixabay

Polygon has released a new update for its network. Polygon contract address released 13.87% of the total supply to the foundation contract address.

Officials from Polygon said 640 million MATIC are allocated to the team and staked directly. Furthermore, 546 million MATIC tokens are allocated to the foundation and 200 million are used for staking awards.

This news has rocked the Polygon community with many users still skeptical over the decision. There is increasing FUD in the community which is now anticipating a ‘major dump’ on the market.

Wait for this

Despite the recent FUD arising out of the announcement, Polygon has released an update about its Q2 performance. The PoS chain now houses 5.34 unique addresses which represents a 12% increase in QoQ (Quarter on Quarter).

While macro conditions continue to be harsh, Polygon saw an increase in transactions during Q2. Total Q2 transactions jumped to 284 million after a 4% surge. There is also good news in the average transaction fees which dropped by 49% to $0.018.

The Polygon NFT space also saw growth in the second quarter. OpenSea reported that 1.2 million new wallets came online on Polygon, thus, increasing the total unique active wallets by 47% to 1.5 million. While the trade volume declined in USD terms by 64%, transaction volume soared by 47% to $122 million.

Polygon also claimed that “Over 90k developers published their first contract. This is more than 3x the pace of Q1 growth. On average, 1k new creators and 2.7k new contracts went live on the chain every day.”

More on the cards

Furthermore, the blockchain firm has announced a partnership with ‘Nothing’ to bridge the gap between Web3 and smartphones. Polygon Vice President of Growth Arjun Kalsy claimed that the plan is to include easy access to games and other applications for the users of the Android-based Nothing Phone (1). He said,

“How do we get even closer to the user? The largest distribution platform in the world is the mobile phone. Basically, the timing was right that now we can take this technology to the masses.”

The recent move of shifting 1.4 billion MATIC tokens appears to be full of risks.

Even so, MATIC, at press time, was trading at $0.86 after slipping through the day by 5.18%.

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Kanav is a journalist at AMBCrypto. He has a Masters in Media and International Conflict and is interested in areas of digital society, crypto developments in the political sphere and the socio-cultural impact of a crypto-society.

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