Decentralized Autonomous Organizations (DAOs) have been gaining popularity in the blockchain space as a way to democratize decision-making and governance. However, the high gas fees on Ethereum have made it difficult for smaller DAOs to operate efficiently. This is where Polygon, a Layer 2 scaling solution for Ethereum, comes in.
In recent months, there has been a surge in DAO activity on Polygon. According to a report by DappRadar, DAOs on Polygon experienced a 2x increase in activity compared to Ethereum in June 2021. This can be attributed to the lower gas fees and faster transaction times on Polygon.
One of the most popular DAOs on Polygon is Aavegotchi, a decentralized gaming platform that allows users to collect and trade digital ghosts called Gotchis. Aavegotchi migrated from Ethereum to Polygon in April 2021 and has since seen a significant increase in activity. The lower gas fees on Polygon have made it more affordable for users to interact with the platform, resulting in a surge in trading volume and user engagement.
Another popular DAO on Polygon is QuickSwap, a decentralized exchange (DEX) that allows users to trade cryptocurrencies with low fees and fast transaction times. QuickSwap has seen a significant increase in trading volume since launching on Polygon in February 2021. The lower gas fees on Polygon have made it more accessible for users to trade smaller amounts of cryptocurrency without being priced out by high transaction fees.
The rise of DAOs on Polygon is not just limited to gaming and trading platforms. Other DAOs such as SushiSwap, Curve Finance, and Balancer have also migrated to Polygon to take advantage of its low fees and fast transaction times.
The increased activity of DAOs on Polygon is a testament to the scalability and efficiency of Layer 2 solutions like Polygon. As more projects migrate to Polygon, we can expect to see even more growth in the DAO space and a more democratized approach to decision-making and governance in the blockchain industry.
In conclusion, DAOs on Polygon are experiencing a 2x increase in activity compared to Ethereum due to the lower gas fees and faster transaction times on the Layer 2 scaling solution. This has resulted in increased user engagement and trading volume for popular DAOs such as Aavegotchi and QuickSwap. As more projects migrate to Polygon, we can expect to see even more growth in the DAO space and a more democratized approach to decision-making and governance in the blockchain industry.
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- Source: Plato Data Intelligence: PlatoData