Polygon (MATIC) crypto falls 6% after US$100,000 donation to Gitcoin

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Polygon (MATIC) crypto falls 6% after US$100,000 donation to Gitcoin

 Polygon (MATIC) crypto falls 6% after US$100,000 donation to Gitcoin
Image source: © Kviztln | Megapixl.com

Highlights: 

  • Polygon is a layer-two solution for infrastructure development on Ethereum. 
  • On Monday, Polygon announced donating US$100,000 to Gitcoin for new projects.
  • Its current market capitalization is US$4.59 billion, with 451,321 token holders.

The Polygon (MATIC) crypto was trending on Monday after announcing a US$100,000 donation to Gitcoin. However, the MATIC token fell 6% after the announcement.

Gitcoin pays developers who work on its open-source software in various programming languages, such as Python, Rust, JavaScript, Solidity, Ruby, HTML, and CSS.

Polygon said in a blog post that it is donating US$100,000 to Gitcoin for building new projects in its ecosystem. Polygon already pledged US$1 million to Gitcoin in five quarterly grants until December 2022 for Web3 growth. 

To participate in Gitcoin’s Grants Round 14, the aspiring teams must submit proposals explaining their project under the criteria laid out by Polygon. It is open to all.

Although Gitcoin will take the final call on the selected projects, it will apply the Quadratic Funding (QF) method instead of matching funds in a 1:1 ratio to choose winners.  

For example, if a project gets a grant of US$100 and another gets four donations of US$25 each, the second project with more contributions will receive a larger grant from Polygon. 

The QF method helps mitigate the risk of whales’ investment in projects.

Round 14 will have a matching cap of 10%, meaning any single donation cannot receive more than 10% of the total pool size. The grant of US$100,000 will be paid in DAI tokens to the projects. 

Amid this update, the MATIC token fell 6.35% to US$0.5733 at 8:49 am ET on Monday.

What Is Polygon (MATIC)?

Polygon is a layer-two platform for scaling and infrastructure development on Ethereum. It allows developers to create rollup or stand-alone chains and other infrastructure. 

Polygon claims to complete 65,000 transactions per second (TPS) on a single side-chain, with less than two seconds for block confirmation. 

Coinmarketcap.com

MATIC token:

MATIC is the native token of Polygon. This ERC-20 token is used to pay for Polygon services and settlements among Polygon users. The token currently has a market capitalization of US$4.59 billion, with some 451,321 token holders. Its 24 hours volume soared 6.10% to US$507.18 million. MATIC’s circulating supply is 8 billion out of the total supply of 10 billion. The token can be purchased from crypto exchanges like Binance, OKX, MEXC, BTCEX, etc.

Bottom line:

Polygon will have a final decision on which grants are eligible for matching. In case of a dispute, the GitcoinDAO Public Goods Funding Workstream will process it in consultation with Polygon. The crypto market is volatile; investors should exercise caution before investing in digital assets.

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