My first proposal that called for the firing of the CEO was censored which has made it clear that this is not a DAO and that Matic holders do not direct Polygon Labs despite that being in the whitepaper. I am thus revising my proposal to focus on my main point to avoid being censored.
Matic is the gas token of the Polygon network. Buyers/investors/holders of this token are the ones that support the network, pay the bills, and use the network. Many have taken on significant risk in order to fund Polygon Lab’s efforts. Polygon zkEVM proposes to ditch Matic as the gas token. It retains Matic in some currently unknown role and for running a validator (from what I’ve read) but that role will be far off in the future. By “far off” I mean we can probably expect it to come at the same pace as ETH PoS so 5ish years at a minimum. This announcement has caused the value of Matic to crash from $1.52 on Feb 17th, 2023, to $0.87, while ETH has risen in the same period from $1694 to $1820. Prices have gone down even further versus ETH since this proposal was first
Matic is the governance token of the Polygon network, much like shares in companies, the holders/owners of Matic make the decisions that guide the company, in this case Polygon Labs (proven to not be true). This decision by Polygon Labs that has caused the price of Matic to dump, damaging their investors. As Polygon Labs has switched over to focusing on zkEVM, it is likely that the value of Matic will continue to decline as people lose faith in the token. Eventually, it could be forseen that it becomes nearly worthless.
This also betrays many of the employees, dapp developers, etc. of Polygon who hold/own/are paid bonuses in Matic. All of whom have suffered. I hope every employee of Polygon Labs has lost somewhat from this because that means they are invested in Polygon.
There is the argument that using Matic for gas on zkEVM would result in additional complexity. My response to that has been that Polygon as a L2 was started with the understanding that Matic would be sold to purchase ETH to reserve block space for the network. There is no reason this situation cannot continue, and this would be more aligned with Polygon’s initial marketing/guidelines to investors when they sold them Matic and with the whitepaper. It makes no sense to change the situation, zkEVM is supposed to lower the ETH needed per tx, thus it should actually be cheaper than Polygon L2 to reserve blockspace on zkEVM. EIP-4844 should further reduce this cost.
Increased demand for Matic also more correctly aligns Polygon with Matic. It makes more sense to stick with a token the Polygon team controls 100% than use ETH which they have 0 control over. What if ETH prices rise to $1,000,000 making zkEVM transactions unaffordable for the casual user?
Let’s keep Polygon as the network of Matic instead of a secondary network for ETH.
Direct Polygon Labs to implement Matic as the gas token for zkEVM. Redirect a % of gas used towards purchasing ETH “if” it’s needed for L1 block space. Perhaps contact the ETH Core developers to get a discount on block space as I know they’ve been considering reserving block space for certain use cases.