Polygon’s staking contract receives 400 million less Matic tokens than what’s specified to public

The fishy aspect about the distribution of issued Matic tokens undertaken by the Polygon Foundation

By Greenchic | Investing and Trading | 9 Feb 2024


 

polygon matic crypto blockchain

So, in my last article  I talked about how token price declines happen because of huge quantities of token selling done by a few big token holders, yes you can call them whales. However, I wanted to talk about Polygon related Matic token issues.

It was found by Blockchain analytics company ChainArgos, that Polygon Foundation’s token distribution was done not following what the Foundation has stated in its publicly stated plan.

More indepth details are in this medium article written by ChainArgos representative –

Poly-gone — 400 Million MATIC Missing?

 

I read the article, but now I can’t open it for I have to be a paid Medium member to access its full contents, so I will try explain this matter without the aid of clearly explained details in that article.

 

 Polygon’s staking contract receives 400 million less Matic tokens than what’s specified to public

I am a huge fan of Polygon, and I believe in their technology and what they offer to better the Web3 space, and I will still keep tabs on developments done by the Polygon developers, but that won’t stop me from pointing out untransparent actions they might have done as in this case, not allocating and distributing that amount of tokens to the staking contract as stated in their Token allocation plans.

Polygon Foundation’s token allocation to Staking Contract has a deficit amount of 400 million tokens, meaning there are 400 million less tokens distributed to the staking contract than what is stated in the publicly stated document still available in the Binance website as found by ChainArgos. Polygon’s Staking Contract should have got a total distribution of 1.2 billion tokens, as said there is a deficit.

Hmmm… so where have these 400 million tokens that’s not distributed to Polygon’s Staking contract get send to??

This news article on Beincrypto explains this story, give it a read -

Polygon Foundation Under Scrutiny Due to MATIC Allocation Concerns

 

400 Million tokens that were not sent to Polygon’s Staking Contract went else where

 

 

Still, let me also narrate the story about the possible where abouts of those missing 400 million Matic tokens that was not sent to the Polygon Staking Contract.

Investigation done by Blockchain analytics company ChainArgos reveal that 300 million Matic tokens were sent to Binance 33, and Binance 33 sent those tokens to an address (0x2f4Ee65D536c5a2Dd72004778167B30aeCb8719C) and here is the Etherscan record showing the details -:
https://etherscan.io/tokentxns?a=0x2f4Ee65D536c5a2Dd72004778167B30aeCb8719C

Whenever Binance 33 sent those tokens to that address, it was offloaded to Binance 14, where I guess the Matic tokens were sold.

Here is screenshot of the address’s Etherscan transaction history…

etherscan web3 matic polygon blockchain

Source

Stroll down the Etherscan transaction history page of this address and we find that the address earlier received Matic tokens periodically from address named Matic: Marketing & Ecosystem that’s sent a total amount of 467 million tokens!

These tokens were also offloaded to Binance, being sent to Binance 14 and obviously sold.

etherscan web3 matic polygon blockchain

Source

 

Selling activities of mentioned Matic address may have resulted in Matic price falls

 

The ultimate question posed by that ChainArgos Arthur in the medium article I have mentioned before is that the selling activities of that address may have brought down the price of Matic token, whenever the price touched 1$ to 2$ price ranges.

matic tokenomics selling crypto polygon

Source

Well… I don’t know. I leave it at that.

 

 Was there a hand that interfered in Polygon’s Smart Contract token flows that’s by default automatic

Did any human interference take place disturbing the automatic token flows from Polygon’s Smart Contract?

However, definitely the token allocation details mentioned by Polygon Foundation should have been edited representing the right amount of tokens that are being sent to the Staking contract.

Another question arises, and for this you need to read ChainArgos’s medium published article.

Token flows from Smart Contract, in this case vesting contract should be automatic and periodic, but ChainArgos author explains that the patterns of Matic token outflows from the Smart Contract look irregular, like as if someone operated the Smart Contract and released tokens…hmmm

crypto polygon maticSource. Outflows from Polygon's Smart Contract looking irregular

 

 With the Intrinsic value of Polygon Blockchain remaining unchained, Matic’s price potential remains good

I still believe in Polygon and its future as stated. One thing to note now – most of the Matic tokens are released into circulation as the Total Supply of Matic is 10,000,000,000 Billion and circulating supply now is around 9,282,943,566 Billion according to Coingecko.

Vesting period for Matic tokens ends by April 2025. So, there is less room for this kind of price manipulation happening with most Matic coins out in Circulation. I think price gains in future will happen due to fundamentals, adoption of Web3 dapps created on Polygon Blockchain and aspects like that.

I would love to hear your views on this, is this undisclosed Matic token distribution that happened something to worry about???

You can read my Articles in these platforms -:

Hive — https://ecency.com/hive-150329/@mintymilecan

Medium - https://medium.com/@kikctikcy

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Greenchic
Greenchic

I love to write on things I am passionate about - environment, citizens activism, crypto and life in general. I am a cat enthusiast, nature lover. I am excited to engage at the Publish0x platform by reading and writing crypto and other content here.


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