The growth of Decentralised Autonomous Organisations (DAOs) on the Aragon network has suffered considerably from the scourge of high gas fees on the Ethereum network, limiting the number of DAOs that can afford to operate on the Web3 platform.
“Ethereum has become the default blockchain for supporting the burgeoning DeFi economy that enables anyone, including the unbanked, to access key financial services like savings, lending, and insurance,” he explained.
By joining the Polygon ecosystem, Aragon can now ensure near-zero gas fees for DAO creation, management, and voting, as well as faster transactions due to the proof of stake (PoS) technology used by MATIC’s layer 2 scaling solution network.
With Polygon PoS integration, anyone can now build the future of web 3.0 communities at 1/10000th cost!
— Polygon | $MATIC (@0xPolygon) September 2, 2021
There are currently more than 500 dApps in the Polygon ecosystem including Sushiswap, Curve, Aave, Balancer and Kyber, with the MATIC network boasting the second-highest number of dApps behind Ethereum.
Speaking with Coin Rivet, Luis Cuende – co-founder and executive director at the Aragon Association – hailed the integration as a breakthrough for the DAO industry, with hopes that reduced gas fees will drive an explosion in DAO uptake.
“Joining the Polygon PoS ecosystem marks an incredible step towards the evolution of DAOs,” he said.
“Empowering users to deploy fast and efficient DAOs directly onto Polygon with their existing Web3 wallet and by connecting to Polygon PoS, rather than requiring a vinculum, is a ground-breaking step forward.
“Aragon is using Polygon as a full-stack scaling solution. Integrating with Polygon brings more than a 5000x reduction in the cost of DAO creation, from well over $500 on Ethereum, to around $0.1 on Polygon. This is a game-changer for DAOs.”
Aragon‘s software is used to create digital organisations such as companies and non-profits that are able to collaboratively conduct finance and decision-making through decentralised apparatus – this can also be used for scaling real-world organisations.
To date, more than 1,700 DAO organisations are already built on the back of Aragon, and the Polygon integration is expected to ignite an explosion of growth for the platform.
More crypto news and information
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.