Polygon Labs Shrinks Team, Network Revenue Continues to Dip
• Polygon Labs announced on 21 February that the company has reduced its workforce by 20%.
• A report showed a steady decline in network revenue in 2022, despite an increase in user engagement and activity.
• The platform completed a major financing round of $450 million last year, which included investors such as Tiger Global, SoftBank and Galaxy Digital.
Polygon Labs Reduced Its Workforce
Polygon Labs, the developer company behind leading sidechain Polygon [MATIC], announced on 21 February that it has consolidated multiple business units resulting in a 20% reduction in its team.
Network Revenue Declined Despite User Activity Increase
Despite user engagement increasing last quarter due to the launch of Polygon’s zero knowledge-EVM public testnet, there was still a notable decline in revenue. The count of daily active addresses on the network jumped by 55%, bringing the year-over-year increase to 23%. Similarly, 32.59 million new addresses were created on Polygon between 1 October – 31 December which culminated in a 34.2% hike from Q3 2022. Further, during the period under review, the network recorded 262.47 million completed transactions according to Messari.
Major Financing Round Completed Last Year
In February last year, Polygon Labs completed its first major financing round of $450 million with private token event involving investors such as Tiger Global, SoftBank and Galaxy Digital among many others. As reported, their treasury remains healthy with over $250 million and over 1.9 billion MATIC tokens being held by them currently.
Strategy for Next 5 Years
To continue on this path of stupendous growth they have crystallized their strategy for the next 5 years to drive mass adoption of web3 by scaling Ethereum further which includes continued use of MATIC tokens for transactions and payments across dApps built on their platform as well as other blockchain networks like Ethereum or Polkadot etc .
The surge in user activity is evidence enough that Polygon continues to be seen as a viable option for developers seeking scalability solutions for their decentralized applications (DApps). With a strong treasury balance and strategic plans for mass adoption of Web 3 technology over the next five years, it looks like Polygon is well positioned to continue its upward trajectory even amidst declining revenue figures from 2022 onwards .