Ethereum scaling solution Polygon said it will build a decentralized autonomous organization (DAO) for the decentralized finance (DeFi) sector.
- Polygon's aim is for the DAO to attract 100 million users and invite this community to have a say in its ongoing DeFi development, according to an emailed announcement Thursday.
- Forming a DAO is "the next logical step" to aiding collaboration between blockchain-based systems, given the presence of projects such as SushiSwap, Curve and Aave already using Polygon as a scaling solution.
- It will use some of its $100 million #DeFiforAll Fund for the process.
- Polygon recently acquired ZK-rollup platform, Hermez, in the first blockchain network and token merger. The acquisition combined with the DAO formation will facilitate Polygon's further decentralization beyond its proof-of-stake model to become a cross-chain protocol.
- A recent DeFi report by ConsenSys found that the 20 largest DAOs hold a combined $20 billion worth of digital assets.
UPDATE (AUG. 19, 15:46 UTC): Adds move to cross-chain protocol, ConsenSys report.
UPDATE (AUG. 19, 17:25 UTC): Adds information about the acquisition of Hermez.