📕Matic Network History📕
Matic co-founder Jaynti Kanani worked with developers at Decentraland in 2018 to create a more efficient version of the Plasma scaling solution for Ethereum. This consequently became the bedrock for Matic’s own technology, whose main-net went live in May 2020
💱How Does Matic Work💱
Matic Network has three layers. The first is a smart contract layer that is built on the Ethereum blockchain. These smart contracts are how the Matic Network connects to Ethereum, and they include smart contracts related to staking, delegation, and any decentralized applications running on the Matic blockchain The second layer on Matic Network is called ‘Heimdall’ and it is where proof of stake validators periodically publish summaries of block transactions to the Ethereum blockchain. The third layer of the Matic Network is called ‘Bor’, the Plasma chain part of Matic
🗡Dagger & Matic Wallet🗡
Dagger is basically a sort of “real world” smart contract that executes a function like sending an email or a phone notification when something happens on the Ethereum blockchain. The Matic Wallet is intended to function as a simple gateway to access decentralized applications on Matic and Ethereum. For the time being, the functions of the Matic Wallet are limited to staking and delegating
Staking rewards on Matic Network range from 6.5% to 650% per year depending on the percentage of MATIC tokens being staked. Matic staking rewards are currently just shy of 30% per year. The hardware requirements to become a validator on the Matic Network are also quite reasonable, and you only need 1 MATIC token to get started. Staking rewards as a delegator are slightly less because you have to pay your dues to the validator.
Matic Network held its initial exchange offering on Binance using the Binance Launchpad. 1.9 billion MATIC were solid for a total price of 5 million dollars, which works out to just over a quarter of a cent per MATIC. Matic also held two private funding rounds which took place at the end of April 2020. The first private sale raised 165 thousand dollars in exchange for just over 200 million MATIC tokens. The second private sale raised 450 thousand dollars.
📊MATIC Price Analysis📊
Even though MATIC has a maximum supply, in practice this does not matter much when a billion tokens are made market ready every 6 months. It also doesn’t help that the Matic team was accused of manipulating the price of their token after it crashed in December 2019 It’s quite clear there is some sort of price manipulation going on with Matic. However, it is very unlikely that the team is involved given their transparency on the matter, and these pump and dump cycles seem to be less and less severe as time goes on
Decentraland, MakerDAO, Circle (USDC), Aavegotchi, and many more.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.