. Now, with the Polymesh blockchain unlocking the true potential of security tokens, the platform aims to protect user confidentiality and ensure identity validation in a way that is not possible on Ethereum alone.\u00a0<\/span><\/p>\nWith the introduction of the Polymesh blockchain comes a token migration from the ERC-20 POLY token to the native POLYX token. The POLYX token will be an essential part of the nominated proof-of-stake (NPoS) consensus mechanism. Also, it provides holders with voting rights. Moreover, Polymath aims to bring transparency, confidentiality, and compliance to security tokens while paving the way for institutional adoption via regulatory frameworks. As such, all Polymath network validators will be \u201cknown, regulated entities\u201d.\u00a0<\/span><\/p>\nWhat is a Security Token?<\/span><\/strong><\/h2>\nSecurity tokens can be considered digital, liquid, fractional contracts for an asset. Fractional ownership on the blockchain provides transparency for investors while helping to bridge the traditional financial sector with the world of decentralized finance (DeFi). Moreover, security tokens can act as liquid contracts for any asset class. This includes tokenized equity rights, corporate stock, art, and real estate.<\/span><\/p>\nAdditionally, security token issuance can play a crucial role in securing funding during a startup or a security token offering (STO). In turn, security tokens provide market access, deep liquidity, and democratization 24\/7 without the need for intermediaries.<\/span><\/p>\nWhat is the POLY Token?<\/span><\/strong><\/h2>\nThe POLY token is an ERC-20 standard utility token that supports the Polymath network. Polymath raised almost $59 million during an initial coin offering (ICO) in January of 2018. Following the launch on Ethereum in the same month, the POLY token has been the primary unit of account for security token issuance throughout the Polymath network. The POLY token is transacted via token issuance, the creation of smart contracts, and legal validation. The creation of security tokens on Ethereum uses the Polymath Ethereum ST-20 token standard. The ST-20 token standard has built-in regulatory requirements for financial securities to simplify compliance. However, to make the process of security token issuance even more streamlined and frictionless, Polymath introduced the Polymesh blockchain. Also, the network will see a migration of the POLY token to the native POLYX token.<\/span><\/p>\nWhat is the POLYX Token?<\/span><\/strong><\/h2>\nThe POLYX token will be the native cryptocurrency underpinning the NPoS consensus mechanism of the Polymesh blockchain. Whereas the POLY token has a limited supply of one billion tokens, the POLYX token will not have a capped supply. Instead, the supply of POLYX tokens will initially be overseen by the Polymesh governing council. Plus, the POLYX token will provide holders with voting rights for governance proposals. This will enable the Polymath community to have a say in the future direction of the protocol and the distribution of grants and subsidies.<\/span><\/p>\nWho are the founders of Polymath?<\/span><\/strong><\/h2>\nPolymath was founded by two Canadians, Trevor Koverko and Chris Housser. Koverko had previously worked in numerous fintech companies before transitioning into cryptocurrency in 2015. Housser spent four years in Toronto working as an associate in financial and employment law. Polymath was founded while searching for a solution to tokenize a private fund. During this process, it became clear that complex technical and legal challenges made it very difficult to launch securities on the blockchain. This led to a much larger vision: instead of launching just one tokenized microfund, why not make it easy for anyone to launch a security token? With this idea, Polymath was born. \u00a0As of today, Polymath has team members and contributors worldwide and a growing list of over 50 global service providers.<\/span><\/p>\nWhat makes Polymath unique? <\/span><\/strong><\/h2>\nSecurity tokens represent a tremendous market opportunity, but there are significant barriers standing in the way of institutional adoption. Polymath addresses these barriers with Polymesh, an institutional-grade blockchain built for security tokens and the first specialized chain of this nature. The foundations of Polymesh are focused on providing through key design principles the most crucial elements that issuers and investors need, and that institutions and regulators require: identity, compliance, confidentiality, and governance. When put together, these four pillars also support more complex operations, such as settlement. When it comes to creating and managing digital securities, Polymesh\u2019s specificity gives it, and the applications built on it, a distinct advantage over general-purpose blockchains. The purpose-built infrastructure addresses the gaps in standard blockchain architecture to align the functioning of the blockchain with the requirements of modern capital markets. In addition to engineering Polymesh, Polymath has also built a series of tools on the chain that offer non-technical users an intuitive means to access the chain\u2019s functionality. By combining Polymesh\u2019s deep functionality with user-friendly tools, Polymath stands to transform capital markets.<\/span><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” header_3_text_color=”#ff8f00″ header_3_font_size=”18px” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]\nPolymath development updates in 2023<\/h2>\n
Polymath (POLY) made notable progress in its development and features in 2023. Key developments in Polymath’s ecosystem this year include:<\/p>\n
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Polymesh Blockchain<\/strong>: Polymath developed Polymesh, a purpose-built blockchain to meet the specific requirements and regulations of security tokens. Polymesh operates on a nominated Proof-of-Stake consensus and includes the finality gadget GRANDPA and token protocol POLYX.<\/p>\n<\/li>\n- \n
Native Protocol Token<\/strong>: POLY is the ERC-20 token deployed on the Ethereum network, while POLYX is the native protocol token that powers the Polymath platform. POLYX is essential for transaction fees and network operations, and POLY holders can upgrade their tokens to POLYX at a 1:1 ratio.<\/p>\n<\/li>\n- \n
Smart Extensions and Token Studio<\/strong>: Polymath’s platform features smart extensions that enable issuers to embed specific rules into security tokens, ensuring compliance and functionality. The Token Studio provides end-to-end service, aiding in creating security tokens with features like broker-dealer services, legal firms, and KYC\/AML providers.<\/p>\n<\/li>\n- \n
Focus on Confidentiality, Governance, Compliance, and Identity<\/strong>: Polymesh is designed with key principles like confidentiality for data protection, governance for proposal and action management, compliance structures for security tokens, and identity features for verified transactions.<\/p>\n<\/li>\n