Polymath (POLY) Locks Up 75 Million Idle Tokens for Five Years to Protect from Hacks
The platform for tokenizing securities has noted that 75 million tokens have been idle, and may be kept more safely in a smart contract that locks a part of the supply.
Polymath (POLY) announced a lockup of 75 million tokens for the next five years, creating scarcity for the central asset in one of the earliest platforms for tokenizing securities. The tokens will be available again on January 1, 2024, announced the Polymath team on its blog.
The rationale behind the locked tokens is to create scarcity, as well as increase credibility, as the unused tokens cannot be dumped on the market. Additionally, the locking smart contract protects the tokens from hacks or exploits.
“This smart contract allows for safe-keeping of the POLY tokens over a 5 year period, rather than being possibly compromised in a hack,” explained the team.
Polymath is a free, open-source platform that allows anyone to create a security token, by offering a process of ticker reservations, both for existing tickers and for projects attempting to create a security token with a new ticker.
The POLY token is used in the process of ticker reservation. For issuing security tokens on the Polymath platform, the team is offering audited smart contracts for the creation and distribution of digital assets.
“Since the release of the dApp in August 2018, 175 users have registered token symbols and more than 75 have created tokens on the platform. Below is an example of a token symbol registration,” the Polymath team stated.
Polymath is one of the solutions in the market, such as Securitonomy, which also focuses on helping companies issue regulated security tokens in supported jurisdictions.
Despite the expectations of a growing security token market, the price of POLY has fallen in the course of the bear market, from peaks above $1.50. POLY sank again on Monday, losing more than 9% in the latest market sell-off, going down to $0.10. In the past three months, POLY has been sinking from levels around $0.30.
At the same time, the project seems dedicated to its goal of servicing a solution for security token issuers, by going for a developer team expansion:
Currently, POLY relies on activity on KuCoin, in a pairing with Bitcoin (BTC), but other Korean exchanges are carrying a market against the won, especially UpBit and Bithumb. However, POLY volumes remain relatively low for now, around $1 million’s equivalent in 24 hours.
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