DAFI protocol has announced a partnership with Polygon (formerly Matic Network) in a bid to combat hyperinflation – one of the biggest issues for Proof-of-Stake blockchain platforms – as well as increase the adoption of blockchain networks.
DAFI Protocol, the project incubated by the Royal Bank of Scotland disclosed the partnership via an official blog post. They note that the collaboration would focus on combating inflation while increasing staking rewards.
This partnership will create a world where hodlers are rewarded better.https://t.co/YKj2egCUZ2
— DAFI Protocol (@DafiProtocol) May 7, 2021
The protocol revealed that it has created a new inflation model that enables projects in the DAFI ecosystem to easily integrate synthetic dTokens. By doing so, projects can utilize a dynamic staking rewards mechanism that considers excess supply.
Polygon, as a result of the partnership, would be able to create dMATIC tokens. This would allow Polygon to reduce its impact on MATIC’s market valuation during cycles of low demand.
Additionally, the synthetic tokens would act as an intermediary rewards model. This means it would reduce the number of MATIC that are released into circulation; enabling MATIC holders to receive incentives with dMATIC tokens.
Expressing his delight with the partnership, Sandeep Nailwal, co-founder of Polygon (formerly Matic Network), noted that the collaboration would help Polygon set a strong foundation for a better future.
According to Nailwal, Polygon utilized DAFI Protocol and its unique position to help solve the challenges of incentivizing holders proportionally. He stated, “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.”
DAFI’s Simulate Launches on Polygon
Meanwhile, as a result of the partnership, DAFI first synthetic application tagged ‘Simulate’ would also launch on Polygon network. According to the announcement, DAFI Protocol would utilize Polygon’s scalability, low transaction fee, and adaptability to further its mission of mainstream adoption.
Notably, Simulate is a Decentralized App (DApp) that focuses on allowing market participants to create synthetics from existing digital assets. While DAFI Protocol increases scarcity, longevity, and sustainability of dTokens for network growth, Polygon would enable market participants to create synthetics from existing crypto assets.
Zain Rana, Founder of DAFI Protocol, noted that the partnership would pave new avenues of awareness for the community; essential for driving long-term utility. He stated, “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.”
It is also worth noting that DAFI Protocol recently announced the upgrade of the DAFI tokenomics. Disclosing that three projects (MATIC, LOKR and REEF) have been integrated into its rewards model.
Another epic 10 days! ☄️
Much more to come 🚀 pic.twitter.com/nGvuRT7r0o
— DAFI Protocol (@DafiProtocol) May 8, 2021
Dafi Protocol (DAFI) has recorded growth in recent weeks. According to CoinGecko, it was trading at $0.03746012 as of the time of publication, with a 24-hour trading volume of $559,456. DAFI price also went down by 7% over the last 24 hours and currently has a circulating supply of 214 million coins and a max supply of 2.25 billion.
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