DAFI Protocol and Polygon join forces to combat hyperinflation through a new reward mechanism
One of the biggest challenges that most Proof-of-Stake blockchains face is the inflation produced by staking rewards distribution.
DAFI Protocol has designed an entirely new inflation model that can significantly contribute to the widespread adoption of blockchain networks. It enables projects in the ecosystem to seamlessly integrate synthetic dTokens to create a dynamic staking rewards mechanism that considers excess supply.
Polygon, formerly known as Matic Network, has teamed up with DAFI Protocol to incentivize token holders through a new staking rewards distribution program that uses demand as one of the main factors.
Polygon and DAFI Protocol aim to fight inflation while increasing staking rewards
Polygon will soon be capable of creating dMATIC tokens after partnering with DAFI Protocol. The new feature would allow the blockchain scalability platform to minimize the impact on MATIC’s market valuation during cycles of low demand.
DAFI’s state-of-the-art staking reward mechanism puts an end to hyperinflation allowing market participants to benefit the most.
Thanks to the partnership, MATIC holders would be incentivized with dMATIC tokens. The synthetic tokens act as an intermediary rewards model significantly reducing the number of MATIC that are released into circulation. Consequently, decreasing inflation and maintaining scarcity whilst increasing staking rewards as the network becomes even further adopted.
Sandeep Nailwal, co-founder at Polygon, understands that passive income has become one of the main drivers for network growth in the cryptocurrency industry. But the pitfall of all current staking rewards distribution programs is that they create an exit mechanism for short-term holders. Avoiding this issue is a must to lessen the impact on those investors who are committed to the long-term success of the project.
DAFI Protocol is in an unique position to help solve this problem incentivizing holders proportionally considering their commitment to Polygon. The new flavour of dTokens in the Polygon ecosystem will further instill an increased level of confidence for $MATIC holders.
“Focusing on Ethereum’s interoperability and scalability issues, Polygon aims to set a strong foundation for a better world tomorrow. By injecting DAFI’s unique staking models in Polygon’s ecosystem, Polygon will be equipped to incentivize early adopters and long-term supporters in a fair and transparent manner. With the iteration of dTokens for decentralized ecosystems, the future seems promising,” said Sandeep.
While DAFI Protocol enhances scarcity, it also focuses on longevity and sustainability for network growth. With this approach, dMATIC tokens will be rewarded to long-term MATIC holders who believe in the utility of the project and can promote the growth and the greater adoption of the protocol.
In times of volatility, DAFI’s synthetics will serve as a hedge to protect the interest of all token holders by controlling the supply and demand of staking rewards models depending on the market conditions.
DAFI’s new Simulate launched on Polygon Mainnet
DAFI recently launched its first synthetic application dubbed “Simulate.”
The new dApp enables market participants to create synthetics from existing crypto assets, showcasing a demand pegging model running on top of the Polygon network. Users will be required to pay small transaction fees in MATIC tokens to create synthetics dTokens.
By teaming up with Polygon, which is quickly becoming one of the most innovative projects in the cryptocurrency industry, DAFI Protocol would take advantage of the network’s scalability, low transaction costs, and adaptability to move closer to mainstream adoption.
Zain Rana, Founder at DAFI Protocol, believes that the partnership would also bring new avenues of awareness for the community, essential for driving long-term utility.
“With the recent launch of our first synthetic creation platform, synergizing with Polygon has opened endless possibilities. Along with leveraging MATIC’s mainnet for our product launch, DAFI will be integrating its flavour of dMATIC tokens into Polygon’s ecosystem. By utilizing dMATIC tokens, Polygon will be able to appropriately reward users according to changing network demands. We are excited to introduce the Polygon ecosystem with DAFI’s utility in the decentralized world,” affirmed Zain.
About DAFI Protocol
DAFI reinvents how every decentralized network is rewarded. By creating synthetics pegged to different decentralized networks, every blockchain and cryptocurrency can create a dToken flavour to reward their early users while still enhancing scarcity when demand is low.
DAFI can reward a network even when demand declines by issuing synthetics that will reward user’s later — instead of earlier. This approach will change the foundation of all staking, liquidity, and even social reward systems for the entire decentralized world.
Polygon, previously known as Matic Network, is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.