Polygon Affirms ETH Alignment with Innovative Plan to Fund Core Devs

Polygon Labs has unveiled an innovative plan to fund Ethereum core developers.

Glowing Polygon with Ethereums in space.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon Labs has unveiled an innovative plan to fund Ethereum core developers.
  • The project revolves around earning DSR yield.
  • The move promises to generate millions yearly for core Ethereum development efforts.

With its native asset, MATIC, ranked as the 13th largest cryptocurrency by market cap at the time of writing, Polygon remains one of the most popular Ethereum scaling solutions.

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While the network often gets flak for being a sidechain and not a true Layer-2 solution, Polygon Labs, the team behind the blockchain, continues to affirm its alignment with the Ethereum network. In the latest instance, the team has devised an innovative way to support Ethereum developers.

Polygon to Support Ethereum Core Developers

In a Twitter thread on Wednesday, August 30, Polygon Labs revealed that it intended to support core Ethereum developers with DAI Savings Rate (DSR) yield earned on DAI reserves through a newly launched Layer 2 DAI contract for all chains using its interchain communication protocol, LxLy.

The contract developed by Risedle co-founder pyk and audited by Hexens would deposit its DAI reserves into Maker’s DSR using Spark Protocol’s sDAI to earn yield. According to Polygon Labs, all yield earned would be donated to Protocol Guild, comprising 152 Ethereum core developers.

Polygon Labs Executive Chairman Sandeep Nailwal touted the initiative as proof of Polygon’s commitment to Ethereum, urging other Layer-2 teams to join the effort.

"We hope that other L2 teams that use Ethereum as a foundation follow our values in helping ensure we sustainably fund Ethereum development for the long term. Not just with short term mechanisms like airdrops and one-time grants," Nailwal tweeted.

Polygon Labs Head of Growth Sanket Shah asserted that the initiative is supposed to generate an additional $4 million per year for the guild.

On the Flipside

  • At the time of writing, the Arbitrum community is the highest contributor to Protocol Guild, with about $3.5 million.

Why This Matters

The Polygon Labs initiative has the potential to provide sustainable funding for core Ethereum development for many years to come.

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Read this to learn more about Polygon’s plan to integrate Spark Protocol:

How Polygon zkEVM Plans to Fire Up DeFi Activity with Spark

Learn how the recent Uniswap ruling could affect the SEC case against Coinbase:

Will the Court Dismiss SEC v. Coinbase? Uniswap Ruling Sparks Optimism

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.