- Polygon Labs has decreased its workforce by 20%.
- A brand new report confirmed a gradual decline in community income in 2022.
Polygon Labs, the developer firm behind main sidechain Polygon [MATIC], introduced on 21 February that, firstly of the yr, the corporate consolidated a number of enterprise items, which resulted in a 20% discount in its workforce.
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While 2022 remained a considerably bearish yr that noticed the collapse of many crypto tasks, in February final yr, Polygon Labs accomplished its first main financing spherical of $450 million.
As reported, the non-public token occasion noticed the involvement of various buyers, together with Tiger Global, SoftBank, Galaxy Digital, Republic Capital, Makers Fund, Alameda Research, Alan Howard, Dune Ventures, Seven Seven Six (based by Alexis Ohanian), Steadview Capital, Unacademy, Elevation Capital, Animoca Brands, Spartan Fund, Dragonfly Capital, Variant Fund, Sino Global Capital, and Kevin O’Leary.
Polygon has grown exponentially.
To proceed on this path of stupendous development we’ve got crystallized our technique for the subsequent 5 yrs to drive mass adoption of web3 by scaling Ethereum.
Our treasury stays wholesome with a stability of over $250 million and over 1.9 billion MATIC
— Sandeep | Polygon 💜 Top 3 by affect (@sandeepnailwal) February 21, 2023
However, a take a look at the funding historical past and the present state of the community’s treasury has led many to query the workforce’s monetary standing.
Users flock to community in This autumn 2022, however income remained elusive
In a 21 February report launched by Messari, Polygon skilled a surge in consumer exercise over the last quarter of 2022. However, regardless of the elevated consumer engagement, the platform logged a notable decline in income.
The hike in consumer exercise was partly due to the launch of Polygon’s zero knowledge-EVM public testnet in October. According to the report, through the 90-day interval, the depend of day by day lively addresses on the community jumped by 55%, bringing the year-over-year enhance to 23%.
Similarly, 32.59 million new addresses have been created on Polygon between 1 October – 31 December. This culminated in a 34.2% hike within the new addresses on the chain from the 24.29 million new addresses recorded in Q3 2022.
Further, through the interval underneath assessment, the community recorded 262.47 million accomplished transactions, in line with Messari. This highlighted the numerous quantity of exercise on the community and prompt a rising demand for Polygon’s companies.
Realistic or not, right here’s MATIC market cap in BTC’s phrases
However, as the final state of the market put strain on MATIC’s worth, the token’s worth fell, leading to a decline in common transaction charges. As a outcome, per Messari, the typical transaction charge on the community fell by 73% in Q3 2022.
Source: Messari
Lastly, Polygon’s financials for the newest quarter confirmed a complete income of $3.91 million, in line with the report. This determine represented a big decline in comparison with the $10 million income that the sidechain community recorded through the first quarter of 2022.
Source: Messari
