Polymesh

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This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Polymesh?

Polymesh is a public permissioned layer 1 blockchain designed to improve the security token industry. It uses its utility token POLYX to reward and fine actors in the ecosystem, ensuring blockchain security. POLYX also facilitates governance and staking within the network.

How is Polymesh used?

Polymesh (POLYX) is a utility token used for various functions within the Polymesh ecosystem. Here are its primary uses:

  1. Governance: POLYX holders can participate in governance by submitting proposals and voting on them. This ensures that verified token holders have a say in the direction of Polymesh.

  2. Staking: Verified POLYX holders can stake their tokens on node operators to secure the chain and earn staking rewards. This incentivizes participation in maintaining the blockchain's operations.

  3. Transaction Fees: POLYX is used to pay for transaction fees on Polymesh. The fees are determined by the size and complexity of the transactions.

  1. Security Token Creation: Companies can create their own security tokens on Polymesh's blockchain. Developers are paid in POLYX for developing these tokens, and Legal Delegators are paid in POLYX for ensuring compliance.

  2. User Verification: KYC providers are rewarded with POLYX for verifying users' identities, which is necessary for purchasing security tokens.

  3. Smart Contract Development: Developers can earn POLYX by developing smart contracts on Polymesh.

Overall, POLYX is the fuel that powers the Polymesh ecosystem, enabling various functions and incentivizing participation in the blockchain's operations.

How do I store Polymesh?

To store Polymesh (POLYX) tokens, you have several options:

  1. Ledger Hardware Wallets:

    • Nano S: Use the Light version of the Polymesh Ledger App, which supports basic functions like sending, receiving, and staking. This version is ideal for the Nano S due to its limited memory space.
    • Nano X: Use the full (XL) version of the Polymesh Ledger App, which includes advanced features and supports over 150 transaction types.
  2. KuCoin Account:

    • Store POLYX in your KuCoin account for quick access to trading products like spot and futures trading, staking, and lending. KuCoin serves as the custodian of your crypto assets, but ensure strong password and security settings.
  3. Non-Custodial Wallets:

  • Withdraw POLYX to a non-custodial wallet, such as hardware wallets, Web3 wallets, or paper wallets, for complete control over your private keys. This option provides maximum security but may be less convenient for frequent trading or staking.
  1. Polymesh Wallet:
    • The Polymesh Wallet is a light wallet for key management and organization. It allows you to see your POLYX balance but does not support direct transactions. For on-chain interactions, use the Polymesh Portal or other Polymesh interfaces.

How to buy Polymesh?

To buy Polymesh (POLYX) tokens, follow these steps:

  1. Create an account: Register on a cryptocurrency exchange that supports POLYX trading, such as Binance, Gate.io, HTX Global, or KuCoin.

  2. Verify your identity: Complete the verification process by providing a government-issued identification document and enabling two-factor authentication for added security.

  3. Deposit funds: Use a debit card, credit card, wire transfer, or Bitcoin to deposit funds into your exchange account.

  1. Buy POLYX: Use your deposited funds to purchase POLYX tokens. You can do this by exchanging your deposited currency for POLYX in the spot market.

For example, on KuCoin, you can buy POLYX with crypto by transferring your crypto to a KuCoin Trading Account and then exchanging it for POLYX in the spot market.

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History of Polymesh

Polymesh (POLYX) is a Layer 1 blockchain designed specifically for tokenizing real-world assets. The protocol was established in September 2020, led by Polymath Inc., which was founded in 2017 and is headquartered in Toronto, Canada. Polymath focuses on creating secure token technology and providing related services. The team consists of experienced professionals from finance, blockchain, and legal sectors.

Polymesh was officially launched in October 2021, and a developer incentive program was started in March 2022. The mainnet was built using Polkadot’s modular tool, Substrate, and is an institutional-grade permissioned blockchain that focuses on solving issues related to governance, identity, compliance, and confidentiality in the realm of securities tokenization.

In January 2018, Polymath raised $58.7 million through an ICO by issuing POLY tokens. These POLY tokens can be converted into POLYX tokens on the Polymesh mainnet via a cross-chain bridge. In June 2022, Polymesh acquired Meta Finance, a company also specializing in securities tokenization. Additionally, Binance announced it would become a network node operator for Polymesh and offer POLYX token staking services to its users in April 2023.

Polymesh has made significant progress, demonstrating high on-chain activity. The network has validated over 100 million blocks and operates with 62 certified nodes. The platform primarily serves business users, with over 7,000 user accounts and more than 5,000 POLYX holders.

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How Polymesh works

Polymesh (POLYX) is a public permissioned layer 1 blockchain designed specifically for the security token industry. It operates by combining the benefits of both public and private networks, ensuring transparency and security while maintaining compliance with regulatory requirements.

Key Components
  1. Node Operators and Stakers:

    • Node operators are permissioned and licensed financial entities that validate blocks and secure the network.
    • Stakers bond their POLYX tokens to node operators to increase their chances of being selected for the validator pool.
    • Both node operators and stakers are rewarded in POLYX for successfully validating blocks.
  2. Nominated Proof-of-Stake (NPoS) Consensus:

    • This consensus model, developed by Polkadot, defines the network's roles, rules, and incentives.
    • It rewards or fines node operators and stakers based on their performance, making harmful behavior costly and difficult to execute.
  3. POLYX Token:

  • POLYX is the native utility token of Polymesh, used for governance, staking, and creating and managing security tokens.
  • It is classified as a utility token under Swiss law and is used to fuel the enabling economy on Polymesh.
  1. Transaction Fees and Governance:

    • POLYX is used to pay transaction fees, which help prevent spam attacks and promote network health.
    • Governance is facilitated through POLYX, allowing tokenholders to participate in decision-making processes.
  2. Security and Compliance:

    • Polymesh requires identity verification for all participants, ensuring a higher level of security and compliance.
    • The network's focus on security tokens and regulated digital assets makes it ideal for corporate governance, ID, B2B systems, and compliance applications.
Functionality
  1. Security Token Creation and Management:

    • Polymesh enables the creation, issuance, and tracking of compliant security tokens, which have integrated regulatory requirements.
    • These tokens offer benefits such as lower costs, higher trackability, and increased efficiency compared to traditional securities.
  2. Instant Settlement:

    • Polymesh's on-chain settlement engine allows for instant settlement times, reducing unnecessary risks and improving the efficiency of asset transactions.
  3. Staking and Rewards:

  • Users can stake their POLYX tokens to secure passive returns, providing a democratic and secure solution for the network.
Overall

Polymesh (POLYX) is a specialized blockchain designed to improve the security token industry by providing a secure, compliant, and efficient platform for creating, managing, and issuing security tokens. Its unique combination of public and private network features, along with its Nominated Proof-of-Stake consensus model, ensures a robust and secure environment for institutional-grade transactions.

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Polymesh's strengths

Polymesh (POLYX) has several strengths that contribute to its robustness and effectiveness:

  1. Security and Governance: Polymesh is a public permissioned blockchain, which means that while anyone can view the network, participants must undergo identity verification to ensure trust and accountability. This verification process applies to all actors, including issuers, investors, stakers, and node operators, increasing network security and transparency.

  2. Nominated Proof-of-Stake (NPoS) Consensus: Polymesh employs the NPoS consensus model, which rewards or fines node operators and stakers based on their performance. This mechanism helps maintain the blockchain’s security by making harmful behavior costly and difficult to execute.

  3. Decentralization and Staking: POLYX staking plays a crucial role in enhancing security and decentralization on Polymesh. Stakers can participate in governance by signaling their voting preferences on network proposals, ensuring that the ecosystem’s direction is shaped collectively by those with a vested interest.

  1. Instant Settlement and Confidentiality: Polymesh offers instant settlement for both on- and off-chain assets through its on-chain settlement engine, two-way transaction affirmation, and near-instant deterministic finality. Additionally, it provides confidential asset issuance and transfers, addressing the need for privacy in securities transactions.

  2. Regulatory Compliance: Polymesh is designed to comply with regulations, making it an attractive platform for institutional-grade assets. It uses an industry-led governance model to prevent hard forks and guide the evolution of the chain, ensuring that it remains aligned with regulatory requirements.

  3. Utility Token (POLYX): POLYX is a utility token that facilitates various functions within the Polymesh ecosystem, including governance, staking, and transaction fees. It is classified as a utility token under Swiss law, based on guidance from the Swiss financial regulator FINMA.

These strengths collectively position Polymesh as a robust and secure platform for the tokenization of securities and other regulated assets.

Polymesh's risks

Polymesh (POLYX) carries several risks, primarily related to staking and the volatility of the cryptocurrency market. Here are some key risks associated with Polymesh:

  1. Volatility: The ROI from staking POLYX is volatile and can drop in value, making it a risky investment.

  2. Security Risks: Node operators who fail to behave correctly, such as being offline or producing inconsistent consensus messages, can lose their staked POLYX. This incentivizes operators to ensure the network remains live and finalizes blocks rapidly.

  3. Crypto Taxes: Staking POLYX may be subject to crypto taxes, which can add legal complexity and financial burdens to stakers.

  1. Market Risks: The value of POLYX can fluctuate based on market conditions, making it a risky investment.

  2. Staking Risks: Staking POLYX can result in losses if the staker's chosen node operator fails to perform well or if the network experiences issues.

These risks highlight the importance of careful consideration and thorough research before investing in Polymesh (POLYX).

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Did Polymesh raise funds?

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Polymesh’s team

  • Trevor Koverko: CEO and Co-founder.
  • Chris Housser: Co-founder (stepping down as Head of Strategy).
  • Tracy Leparulo: Chief Events Officer.
  • Graeme Moore: Head of Tokenization and new leader of the Polymesh Association.
  • Nick Cafaro: Head of Product.
  • Adam Dossa: Head of Blockchain.
  • William Vaz-Jones: Head of Partnership Development.
  • Robert Gabriel Jakabosky: Head of Applied Blockchain Research.
  • Francis O'Brien: Head of Developer Relations.

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The fundamental analysis assistant for crypto value investors.

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