Products
Trading Strategies
Markets
© 2025 Edgen Powered by
Ask AI About POL
No Data Yet
## Executive Summary AMINA Bank, a Swiss Financial Market Supervisory Authority (**FINMA**)-regulated institution, has launched regulated institutional staking services for **Polygon**'s native **POL** token. This offering makes AMINA Bank the first globally to provide such a service, enabling qualified institutional participants, including asset managers and corporate treasuries, to earn up to 15% in staking rewards through a collaboration with the **Polygon Foundation**. The move is seen as a significant step in bridging traditional finance with decentralized networks, offering a compliant avenue for institutions to engage with blockchain infrastructure. ## The Event in Detail **AMINA Bank AG**, based in Zug, Switzerland, has announced the global rollout of regulated staking services for **POL**, the native token of the **Polygon** ecosystem. This marks a first for any regulated bank worldwide, building upon AMINA Bank's existing **POL** custody and trading access. The service targets qualified institutional participants such as ultra-high-net-worth individuals (UHNWIs), asset managers, family offices, pension funds, and corporate treasuries. Clients can achieve staking rewards of up to 15%, a figure derived from **AMINA Bank**'s standard staking rewards, typically 4-5%, augmented by an additional incentive boost provided by the **Polygon Foundation**. The initiative ensures adherence to regulatory standards, requiring clients to meet **AMINA Bank**'s Know Your Customer (KYC) and compliance requirements. **AMINA Bank** holds a banking and securities dealer license from **FINMA** and has secured approvals from regulators in Abu Dhabi and Hong Kong, underscoring its commitment to regulated digital asset services. ## Financial Mechanics The staking reward structure for **POL** on **AMINA Bank** comprises a base yield supplemented by additional incentives from the **Polygon Foundation**, culminating in potential annual rewards of up to 15%. Specifically, the **Polygon Knowledge Layer** outlines scenarios where a 15% annual reward is projected if 40% of the circulating supply is staked in the first year, or if 10% of the circulating supply is staked in the fifth year. These rewards are structured as a fixed yearly incentive, distributed periodically to all participating signers, irrespective of the overall network stake or target bonding rate. Furthermore, **Polygon** incorporates an incentive for validators who commit periodic checkpoints to the **Ethereum** mainnet, providing a bonus to cover the costs associated with this Layer 2 responsibility. This combined mechanism aims to provide attractive, consistent returns for institutional participants while securing the network. ## Business Strategy & Market Positioning **AMINA Bank**'s expansion into **POL** staking aligns with its strategy to bridge traditional finance with the burgeoning **Web3** ecosystem. By offering regulated access to staking rewards, the bank aims to enable institutional clients to participate in securing a network that is increasingly forming the backbone of institutional **Web3** adoption. **Polygon** has solidified its position as a leading institutional blockchain infrastructure, currently supporting nearly $3 billion in stablecoin market capitalization and exceeding $1 billion in tokenized real-world assets on its Proof-of-Stake (**PoS**) blockchain. Major institutional deployments on **Polygon** include **BlackRock**'s **BUIDL Fund**, a tokenized money-market fund. Leading financial institutions such as **BlackRock**, **JPMorgan**, and **Franklin Templeton** have chosen **Polygon** for their expansion into tokenization and on-chain finance, further validating its utility. Myles Harrison, Chief Product Officer of **AMINA Bank**, stated that this expansion provides clients with regulated access to the blockchain, enabling them to be rewarded for contributing to network stability and security. ## Market Implications This initiative by **AMINA Bank** carries several significant market implications. The provision of regulated institutional staking for **POL** is expected to increase institutional interest and potentially drive capital flow into the **Polygon** ecosystem. It establishes a compliant model for institutional engagement with decentralized finance (**DeFi**) and staking activities, which may encourage other regulated financial institutions to explore similar crypto offerings. Long-term, this move contributes to the further legitimization and integration of crypto staking into mainstream financial products, accelerating institutional engagement with digital assets. The regulatory clarity provided by **AMINA Bank**'s licenses (FINMA, Abu Dhabi, Hong Kong) helps de-risk institutional participation, fostering bullish sentiment for institutional adoption and contributing to the evolution of global regulatory frameworks for digital assets. ## Broader Context The launch of regulated **POL** staking by **AMINA Bank** occurs within an evolving global regulatory landscape for digital assets. Jurisdictions worldwide are actively shaping frameworks to accommodate crypto activities, including staking services. In April 2025, Hong Kong's Securities and Futures Commission (**SFC**) released new guidelines allowing licensed platforms to offer crypto staking under strict conditions, requiring full control of staked assets, robust disclosure, risk controls, and explicit regulatory approvals. Similarly, in January 2025, a statutory instrument in certain jurisdictions removed crypto staking from the definition of "collective investment schemes," facilitating regulated staking services. While European Union's Markets in Crypto-Assets (**MiCA**) regulation, effective fully from December 2024, sets comprehensive standards, and the U.S. progresses with legislation like the **STABLE Act** and **GENIUS Act**, the global trend points towards increasing regulatory oversight and clarity. This environment, characterized by both tightening oversight and the development of clear guidelines, underscores the importance of compliant offerings like **AMINA Bank**'s in fostering broader institutional participation in the digital asset space.
## Executive Summary Polygon implemented the Rio hard fork on its PoS mainnet, integrating Validator-Elected Block Producer (VEBloP) and stateless validation to boost speed, target 5,000 transactions per second, and improve network stability. ## The Event in Detail Polygon, an Ethereum Layer 2 network, has activated the Rio hard fork on its proof-of-stake (PoS) mainnet. This upgrade introduces a new block production model, **Validator-Elected Block Producer (VEBloP)**, designed to eliminate chain reorganizations and shorten block times. Under VEBloP, validators elect a small pool of producers, with one proposing blocks for extended periods while designated backups are on standby. Complementing VEBloP, **PIP-72** introduces "witness-based" stateless validation. This allows nodes to verify blocks without maintaining the full blockchain state, significantly reducing hardware requirements and speeding up node synchronization. Previously, the Polygon chain's state exceeded 1 terabyte, necessitating high-capacity NVMe SSDs and substantial RAM for validators, leading to considerable operational costs and sync times measured in days or weeks for new nodes. Stateless verification aims to reduce storage requirements to approximately 90 gigabytes. Additionally, the block gas limit has been increased by 33%, from 45 million to 60 million, further boosting transaction throughput. During the hard fork, cryptocurrency exchange **Binance** temporarily suspended deposits and withdrawals for **POL** tokens to ensure a smooth transition, a standard operational procedure for such network upgrades. ## Financial Mechanics and Business Strategy The **VEBloP** model includes an economic change that redistributes fees, including any captured Maximum Extractable Value (MEV), ensuring that non-producing validators remain incentivized. This design aims to balance increased network efficiency with decentralized participation. **PIP-72** directly addresses the financial burden on validators. By reducing storage requirements from over 1 terabyte to approximately 90 gigabytes, it lowers hardware costs and operational expenditures, facilitating broader network participation and decentralization. This strategy allows Polygon to process high-throughput block production without imposing excessive computational and storage demands on its validators. Polygon's "GigaGas" roadmap, of which Rio is a key component, targets 5,000 transactions per second, aligning the network for global payment rails and the rapidly expanding sector of **Real-World Assets (RWAs)**. This strategic positioning seeks to solidify Polygon as a foundational layer for large-scale Web3 applications, drawing parallels with efforts by other Layer 2 solutions to optimize for speed and cost-efficiency. ## Market Implications The Rio upgrade is expected to enhance network stability and significantly increase transaction speeds, which could attract more decentralized applications (dApps) and users to the Polygon ecosystem. The reduction in hardware costs for validators via stateless validation is anticipated to lower barriers to entry, potentially increasing the number of network participants and strengthening decentralization. Market sentiment is generally positive, anticipating improved network performance and stability. However, some short-term caution may exist regarding the immediate post-hard fork stability, as is common with significant network upgrades. Medium-to-long term, these enhancements could solidify Polygon's competitive position as a leading Ethereum Layer 2 solution. The increased efficiency and scalability contribute to the value proposition of the **POL** token by supporting a more robust and attractive network for developers and users. This also sets a precedent for other Layer 2 networks seeking similar optimizations for scalability and efficiency. ## Broader Context The Rio upgrade follows a series of stability incidents on the Polygon PoS network, including finality delays and an hour-long outage in 2023. This upgrade directly addresses these vulnerabilities by eliminating chain reorganizations and improving overall network resilience. Polygon's pursuit of 5,000 transactions per second through initiatives like **GigaGas** positions it within the broader trend of blockchain scalability solutions. While Polygon focuses on a PoS-based approach with architectural refinements, other Layer 2 solutions explore different methodologies, including **zk-based efforts** (zero-knowledge proofs), to achieve similar scalability goals for the Ethereum ecosystem. The success of the Rio upgrade on the mainnet will be crucial in demonstrating its performance under stress and high transaction volumes, with continued monitoring needed for security, centralization trade-offs, and interoperability within the broader Web3 landscape.
## Executive Summary An activist investor, **Venturefounder**, has put forward a proposal for a substantial overhaul of **Polygon's** tokenomics. The proposal advocates for the elimination of **POL's** 2% annual inflation rate and the introduction of a treasury-funded buyback or burn program. This initiative is designed to address **POL's** 46% decline in value over the past year and its underperformance relative to the broader cryptocurrency market, with the goal of combating token devaluation and restoring investor confidence. The discussion around this proposal has introduced potential short-term volatility for **POL**, while its long-term adoption could significantly alter **POL's** supply dynamics and value proposition. ## The Event in Detail The proposal, authored by **Venturefounder**, targets **Polygon's** **POL** supply model, specifically calling for the removal of its 2% annual inflation rate. Under the current tokenomics, this inflation rate introduces approximately 200 million new **POL** tokens into circulation each year, which **Venturefounder** argues contributes to persistent selling pressure and price depreciation. The proposal suggests two primary approaches: either transitioning to a 0% inflation target to establish a fixed supply, or implementing a tapering schedule that would reduce inflation by 0.5% per quarter until it reaches zero. This initiative stems from **POL's** notable underperformance, trading below its 2022 bear-market lows despite a broader crypto market rally led by assets like **Bitcoin** (**BTC**) and **Ether** (**ETH**). **Polygon** co-founder **Brendan Farmer** and CEO **Marc Boiron** have acknowledged the ongoing discussion surrounding the proposal. ## Financial Mechanics The core financial mechanism under scrutiny is **POL's** 2% annual inflation, which currently funds staking rewards and aims to bootstrap network activity. This inflation translates to an annual issuance of approximately 200 million **POL** tokens. The proposed cessation of this inflation seeks to transition **POL** towards a more deflationary or fixed-supply model, akin to successful precedents observed in tokens such as **BNB**, **Avalanche** (**AVAX**), and **Ether** (**ETH**). Concurrent with the inflation halt, **Venturefounder** proposes a treasury-funded buyback or burn program. Token buybacks involve a project repurchasing its tokens from the open market, often leading to their permanent removal from circulation (burning). This mechanism typically aims to create scarcity, stabilize market prices, and enhance token value by reducing circulating supply. However, the implementation of such a program requires sustainable funding mechanisms and raises considerations about market liquidity and potential for manipulation if not managed transparently. ## Business Strategy & Market Positioning **Polygon's** original tokenomics allocated 12% of its 10 billion total token supply to staking rewards, primarily intended to incentivize early network participation until transaction fees could sustain validators. The current proposal represents a strategic re-evaluation, aiming to align **POL's** supply dynamics with its technological and strategic realities. The move towards a potentially deflationary model is a direct response to investor dissatisfaction with **POL's** market performance and aims to reinforce investor confidence. In the competitive landscape of Layer-2 scaling solutions, where **Arbitrum** and **Optimism** vie for market share, **Polygon** faces pressure to optimize its value proposition. The success of this proposed tokenomics adjustment could be crucial for **Polygon** to maintain its competitive edge and attract further investment in its ecosystem. ## Market Implications If adopted, the proposed tokenomics overhaul could significantly impact **POL's** market dynamics. The elimination of the 2% annual inflation would reduce the consistent selling pressure from newly issued tokens, potentially leading to a more stable or appreciating asset value. A buyback and burn program could further enhance scarcity and investor confidence. However, concerns have been raised regarding the long-term sustainability of funding validator rewards in a 0% inflation scenario, as analysis suggests a significant portion of current validator income derives from newly issued coins. Failure to address these underlying concerns could lead to continued underperformance and a potential loss of market share to competing Layer-2 networks. Conversely, successful implementation could revitalize investor sentiment and solidify **POL's** position in the evolving Web3 ecosystem. ## Expert Commentary **Venturefounder** asserted that the proposed changes are "intended to align the supply dynamics of **POL** with its current technological and strategic reality, reinforce investor confidence, and prevent further token devaluation and network stagnation." The investor highlighted **POL's** 46% decline and its trading level below 2022 bear-market lows as "inexcusable." The ongoing community debate reflects diverse opinions on funding validator rewards without inflation and the sustainability of buyback programs. While the project's co-founder and CEO have engaged with the discussion, the feasibility and ultimate impact of the proposed changes remain subjects of active deliberation within the **Polygon** community. ## Broader Context The proposal for **Polygon's** tokenomics overhaul occurs within a broader trend of cryptocurrency projects re-evaluating their supply models to foster long-term value and investor confidence. The debate underscores the evolving understanding of sustainable tokenomics in a rapidly maturing market. As Layer-2 solutions continue to compete for adoption, token design has become a critical differentiator. The outcome of this proposal could set a precedent for how other blockchain projects address inflation, validator incentives, and community-driven governance in their pursuit of market relevance and sustained growth.
## Executive Summary September 2025 marked a period of general cooling across cryptocurrency markets, with 23 of 35 major assets declining, despite **Bitcoin (BTC)** registering a modest 5% gain. **Ethereum (ETH)** experienced a 5% decrease. This market behavior occurred amidst pivotal technical upgrades on major blockchain networks and a significant expansion in decentralized finance (DeFi) derivatives. The month also highlighted a notable re-engagement by institutional players in enterprise blockchain solutions, signaling a maturing ecosystem despite broader market uncertainty. ## The Event in Detail **Solana** achieved a significant milestone with the overwhelming approval of its **Alpenglow upgrade** by validators, garnering 98.27% support. This technical overhaul aims to reduce transaction finality times from over 12 seconds to 100-150 milliseconds, representing a 100-fold speed improvement. The upgrade replaces **Proof-of-History** with **Rotor** for transaction timestamping and **TowerBFT** with **Votor** for validator voting, enhancing consensus efficiency. Furthermore, **p-tokens (Pinocchio library)**, under development by Anza, are expected to boost transaction efficiency by up to 19 times by optimizing Solana program execution through zero-copy data structures, potentially reducing computational resource usage by 95%. This aims to make Solana a more attractive platform for high-frequency trading and financial applications, with **Total Value Locked** reaching $8.6 billion in Q2 2025. **Ethereum** is preparing for its **Fusaka upgrade**, scheduled for December 2025. This upgrade will integrate **Peer Data Availability Sampling (PeerDAS)**, a key feature to enhance Layer-2 scalability and reduce transaction costs. The plan involves doubling blob capacity from six to nine per block initially, with subsequent forks planned to increase this to 15 and then 21 blobs per block by January. **Vitalik Buterin**, Ethereum co-founder, emphasized that PeerDAS will allow nodes to verify data availability without downloading full datasets, addressing Layer-2 bottlenecks. However, **Tomasz Stanczak**, Ethereum Foundation co-executive director, cautioned that coordination challenges risk delaying fourth-quarter deadlines for Fusaka. In the **DeFi derivatives** sector, **Perpetual Decentralized Exchanges (DEXs)** reached a record-setting $1.226 trillion in monthly trading volume. **Aster** led this surge, with its trading volume escalating from $1.15 billion to $85.55 billion within 12 days of its **Token Generation Event (TGE)** on September 17, 2025. This rapid growth was attributed to a gamified incentive system offering "Rh points" for trading activity, redeemable for **ASTER** token rewards. This accelerated Aster past **Hyperliquid**, the previous market leader. Despite this, skepticism exists regarding whether a portion of this volume constitutes wash trading. Hyperliquid maintained its position as an influential force, commanding approximately 70% of the perp DEX market share according to Token Terminal and DeFiLlama data. The re-emergence of **enterprise blockchains** gained momentum, with major institutions like **JP Morgan**, **SWIFT**, **Societe Generale**, **Stripe**, **Circle**, **Coinbase**, and **OpenAI** initiating significant projects. This trend signifies growing regulatory clarity and institutional confidence, indicating a shift towards a "utility phase" where blockchain technology is integrated into core business operations. Market analysts project enterprise blockchain spending to reach $145.9 billion by 2030, driven by AI and IoT data volumes. Concurrently, **Plasma (XPL)** launched a $10 billion chain with a $1.25 billion airdrop, contributing to **Binance's (BNB)** 16% outperformance. ## Market Implications The technical upgrades in **Solana** and **Ethereum** are poised to significantly enhance network scalability and reduce transaction costs, potentially driving wider adoption across various applications, from gaming to high-frequency trading. The **Alpenglow** upgrade's 100x speed improvement and the **Fusaka** upgrade's **PeerDAS** implementation address critical infrastructure limitations, positioning these networks for increased throughput and efficiency. However, potential delays in Ethereum's Fusaka upgrade could impact developer timelines and market sentiment regarding its scaling roadmap. The extraordinary growth in **Perpetual DEXs**, particularly the rapid ascent of **Aster**, underscores increasing demand for decentralized derivatives. While token incentives have fueled this expansion, concerns about wash trading highlight the need for robust market integrity mechanisms in the DeFi space. This shift from centralized exchanges towards non-custodial trading platforms reflects evolving trader preferences for transparency and continuous access. Renewed institutional engagement in **enterprise blockchains** suggests a deepening integration of Web3 technologies into traditional finance and corporate structures. Projects from banking and technology giants indicate a move beyond experimental phases toward practical, scalable solutions that meet regulatory and performance demands. This trend, coupled with the growth of **Digital Asset Treasuries (DATs)**, as championed by firms like **Pantera Capital**, signifies a strategic shift in corporate asset management, where companies leverage digital assets to generate yield and grow net asset value per share through strategies like staking rewards and DeFi yields. The **DAT market** is projected to involve over 209 firms and raise $145 billion by 2025, providing an alternative to traditional asset holdings. ## Expert Commentary **Ethereum co-founder Vitalik Buterin** highlighted that **PeerDAS** is "trying to do something pretty unprecedented: have a live blockchain that does not require any single node to download the full data," emphasizing its potential to transform Layer-2 scaling. Conversely, **Tomasz Stanczak**, co-executive director of the Ethereum Foundation, warned that "coordination slippage is putting fourth-quarter deadlines at risk for the Fusaka update," underscoring the complexities of large-scale protocol upgrades. Regarding **Solana's p-tokens**, **Scott Hague**, founder of Flux RPCs, expressed skepticism that the real-world impact might be limited, suggesting resources could be better directed elsewhere, despite the projected efficiency gains. ## Broader Context The September market movements reflect a broader narrative of a maturing yet still volatile cryptocurrency ecosystem. While the overall market experienced a cooling trend, significant advancements in core blockchain infrastructure and specific market segments demonstrated resilience and innovation. The confluence of regulatory clarity, technological maturation, including **Layer-2 solutions**, **zero-knowledge proofs**, and **Byzantine Fault Tolerant (BFT) consensus mechanisms**, is facilitating the transition of blockchain from experimental technology to production-grade infrastructure. This pivotal period sees enterprise blockchain adoption shifting from proofs-of-concept to systems delivering tangible business value, with 48 of the Fortune 100 expected to operate business-critical workloads on permissioned or hybrid blockchain networks by mid-2025. This indicates a sustained trajectory toward integrating digital assets and blockchain solutions into the global financial and technological landscape.