Polygon, a leading Ethereum scaling solution, has unveiled plans for a self-sustaining ecosystem fueled by a Community Treasury and governed by an independent board. This move signifies a significant step towards decentralized governance for the Polygon network.
The Polygon Community Treasury, initially proposed in the protocol's whitepaper, allocates funds specifically for the growth and longevity of the Polygon network and its surrounding ecosystem. The Polygon team sees the Community Treasury as one of the three key pillars of the ecosystem’s governance.
In their announcement last week, Polygon introduced a new independent Community Treasury Board (CTB). The board will hold the ultimate authority over how funds are allocated, ensuring transparency and strategic decision-making. Previously, Polygon maintained a limited grant program for the development of the ecosystem, which was managed by the team within the foundation. The Community Treasury is funded by a 1% emission of POL, the project's staking token. The emission rate dedicated to this purpose is roughly 100 million POL (around $70 million at the time of writing) per year and can not be changed for 10 years.
"The Community Treasury framework marks a new era for
Polygon," says the announcement on the Polygon blog. "It emphasizes
efficient and community-driven ecosystem development built on transparency,
long-term vision, and a commitment to progressive decentralization."
The inspiration for this governance model draws from established
blockchain governance systems, with a clear nod to Ethereum's model. Ethereum's
open and inclusive approach has demonstrably fostered the network's development and adoption. Polygon's proposal aims to leverage this successful model and extend it within the Polygon ecosystem.
The CTB will include five members. The member selection criteria outlined on the Polygon forum emphasized the importance of experience, commitment to decentralization, ethics, communication skills, collaborative spirit, community engagement, and dedication. Candidates are expected to have enough technical expertise in blockchain technology and related fields to be able to evaluate the funding proposals. The monthly compensation for CTB members is $5,000.
The first members selected for the CTB are David Gocel from dYdX, Pete Kim from Coinbase, Maggie Love from SheFi, Ajit Tripathi, and Quickswap’s Roc Zacharias.
The announcement comes amidst a flurry of activity from Polygon. The recent introduction of EIP-4844 compatibility highlights their ongoing commitment to innovation and integration with the Ethereum network.
The establishment of a Community Treasury with an independent
board is a significant development for Polygon. It empowers the community to
play a more active role in shaping the network's future while ensuring the
long-term health and sustainability of the Polygon ecosystem. With a focus on
transparency and community-driven decision-making, this framework has the
potential to propel Polygon further as a leading player in the blockchain
space.
