Polygon brings (carbon) positivity to crypto

Polygon brings (carbon) positivity to crypto

Polygon brings (carbon) positivity to crypto

It may have been another cloudy week for crypto, but a few stars are still shining. One of the brightest is Polygon, the Layer 2 solution that makes Ethereum so much faster and cheaper to use.

Polygon’s MATIC token has nearly doubled in price in the last five days, outperforming all other large marketcap coins. Polygon whales — those who hold a million or more tokens — have added nearly nine percent to their wallets since early May, according to data from Santiment.

A couple of recent announcements could be the reason behind this bullish stacking behaviour.

Polygon goes carbon neutral

Polygon has committed to becoming carbon-neutral and even carbon-positive by the end of this year. This week the project announced a partnership with KlimaDAO, a group that describes itself as a “black hole for carbon at the center of a new green economy.”

KlimaDAO analyzed Polygon’s energy footprint to identify areas with the highest carbon emissions and then created a plan to reduce them. As a result, Polygon purchased 400 thousand dollars worth of carbon credits, representing nearly a hundred and five thousand metric tonnes of greenhouse gasses.

That’s equal to Polygon’s entire CO2 debt since it was launched in 2017. In other words, Polygon has paid for the environmental impact of every transaction made on the network.

The whole business of carbon credits is a complicated and controversial subject, and well beyond what we’re going to get into here, but what’s important to understand here is that buying credits helps get CO2 out of the atmosphere, and investors tend to reward companies that commit to doing that.

In a recent blog post, Polygon co-founder Sandeep Nailwal said:

“Our world is facing an environmental crisis, and the blockchain industry must do far more than promise to stop adding to the problem. Reaching carbon neutrality is an important first step, but there is more work ahead."

Other Polygon developments

Further adding to MATIC’s buying pressure was Polygon’s announcement of a brand new product that makes secret voting possible in decentralized autonomous organizations, called Polygon ID. It’s based on a technique known as a zero-knowledge proof, which uses advanced cryptography to verify a user's identity without actually revealing it.

This is important because members of a DAO vote on governance protocols using tokens and digital signatures from their personal wallets. Current systems put that data on the blockchain in a way that lets others use it to trace their previous activity and even identify them personally. Polygon ID makes all that impossible, adding to the value of the network.

In other news, Coinbase just announced that eligible customers will soon be able to send and receive ETH, MATIC, and Circle’s USDC stablecoin over the Polygon network. This move is part of their strategy to make it faster, easier, and cheaper to access Web3.

If you don’t want to wait, you can use Polygon in Exodus today.  
If markets remain bearish who knows if MATIC’s positive price action will continue, but if nothing else Polygon is cementing its place as crypto’s Layer 2 scaling solution of choice.

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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