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Polygon’s expansion plan: All you need to know

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On 19 July, Polygon [MATIC] Labs presented a proposal regarding restructuring of the governance structure for its expansion as part of the Polygon 2.0 plan.

All blockchains and applications running on the Polygon network are expected to be included in the expansion. In addition, it aims to democratize the update process and spur community engagement.

The team announced,

“We are proposing a forward-looking framework for decentralized ownership and decision-making over all Polygon protocols and the ecosystem.”

The Polygon team has introduced a governance framework that is supported by three “main pillars,” each of which is tailored to certain functions within the Polygon ecosystem.

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The first pillar focuses on expanding the Polygon Improvement Proposal (PIP). It aims to enable users to propose and explore protocol updates for all blockchains and applications that run on the network. It would allow community members to conduct research and offer improvements that could eventually become protocols.

The second pillar revolves around the System Smart Contracts Governance model. It makes it easier to upgrade protocol changes or software incorporated as a smart contract. The Ecosystem Council will supervise such modifications. The Council comprises of reputable members and is elected and managed by the community.

The third pillar talks about the Community Treasury governance mechanism. It promotes the expansion of the Polygon ecosystem and funding projects. An independent Community Treasury Board will control it; community-driven governance will eventually replace the board.

Polygon is showcasing its initiative as a symbol of community-driven decision-making as it prepares to enter this new phase of decentralized government.

The price of MATIC grew by 8% following the announcement. At press time, MATIC was trading at $0.7959.

Source: MATIC/USD, TradingView

Last week, its price surged 25% to 0.89 following the court judgement about the U.S. Securities and Exchange Commission (SEC)’s lawsuit against the Ripple [XRP].

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