In today's rapidly developing blockchain world, Polymesh is attracting more and more attention as a blockchain platform focused on security and compliance. POLYX token, as the native token of Polymesh, plays an important role. This article will delve into POLYX’s internal and enabling economies and analyze its importance in the Polymesh ecosystem.
internal economy
Polymesh’s internal economic system is designed to provide absolute finality, incentivize correct block production, and build a sustainable and secure network. The core of this economic system lies in the Polymesh network reserve, and its funding sources mainly come from three aspects:
One-time transfer: from Polymath reserves currently held on Ethereum.
Protocol usage fees: such as security token allocation fees.
Network transaction fees: transaction fees used to support network operation.
POLYX distribution will be based on a governance process that may evolve as Polymesh matures. Initially, fund expenditure requests for network reserves will be managed by the Polymesh Governance Committee, and may be transferred to POLYX holders in the future based on the decisions of the Governance Committee. Network reserve funds will be used for developer incentives and subsidies, as well as driving the growth of the Polymesh ecosystem.
POLYX Supply and Distribution
The total supply of Polymath’s ERC20 protocol token POLY is 1 billion. Most POLY will be converted to POLYX, meaning the supply of POLYX will change over time and will not be fixed or limited by a predetermined cap. The supply of POLYX will increase to fund block rewards. The design of the block reward mechanism will ensure that a sufficient proportion of POLYX is pledged at any time to support Polymesh's proof-of-stake consensus mechanism.
Block rewards will be funded through network fees, in addition to being funded through newly minted POLYX. Such a design can not only stimulate the enthusiasm of participants, but also ensure the stable operation of the network.
Enable the economy
In Polymesh, the use of POLYX is not limited to transactions, but also involves a series of functions and services. POLYX’s fees are designed to prevent denial of service (DDoS) or spam attacks while rewarding developers and organizations that build additional custom functionality on Polymesh, such as compliance rules for specific asset classes and jurisdictions.
Polymesh’s POLYX fees are divided into three categories, all paid by the initiator of the transaction:
Transaction fee (Gas fee): covers all transactions conducted on Polymesh, is charged based on the size (in bytes) and complexity of the transaction, and is payable regardless of the function of the transaction.
Protocol Fees: Fees charged for certain native features (such as reserved token tokens), set by the Polymesh Governance Committee.
Developer Fee: A fee charged by developers of smart contracts and smart extensions. It is not yet enabled on Polymesh. The specific mechanism and fee distribution will be determined through the on-chain governance process.
Multiple uses of POLYX
POLYX is not just a trading medium, it has multiple uses on the Polymesh chain, including:
Transaction fee payment: used to pay fees for various transactions conducted on Polymesh.
Participate in governance: POLYX holders have the right to participate in the governance of Polymesh and influence future development directions and decisions.
Profit from staking: Holders can pledge POLYX to obtain block rewards, which not only increases the holder's income, but also promotes the security of the network.
in conclusion
As blockchain technology continues to evolve, Polymesh provides new solutions for security and compliance with its unique design and functionality. As the core token of the platform, POLYX plays multiple roles, showing its importance both in the internal economy and the enabled economy. As Polymesh develops, the potential and value of POLYX will continue to grow, becoming the focus of investors and developers.
In the days to come, how Polymesh and its POLYX token will impact the blockchain ecosystem deserves our continued attention.