What is Polymesh (POLYX)?

Deep Dive

1. Institutional-Grade Infrastructure

Polymesh targets securities tokenization – stocks, bonds, ETFs – by addressing regulatory pain points absent in general-purpose chains. Unlike Ethereum, it natively handles investor identity checks (CoinMarketCap), transaction confidentiality via encrypted balances/identities, and deterministic settlement finality. This makes it suitable for institutions navigating strict compliance regimes.

2. Compliance-Centric Architecture

The chain uses a permissioned model where node operators are vetted entities. Key features include:
- Identity layer: Mandatory KYC for participants, reducing anonymity risks
- Confidential Assets: Encrypted transactions visible only to authorized auditors/regulators (Confidential Assets launch)
- Governance: Onchain voting for protocol upgrades, managed by POLYX holders

3. POLYX Token Mechanics

POLYX serves three core functions:
- Network security: Staked via Nominated Proof-of-Stake (NPoS), with rewards algorithmically adjusted to maintain ~70% staked supply
- Transaction/Protocol fees: Used for asset creation, settlements, and governance actions
- Governance: Voting on upgrades like fee structures or compliance parameters

Tokenomics cap inflation at 14% annually until 1 billion POLYX supply, then shift to fixed 140M yearly minting.

Conclusion

Polymesh positions itself as a regulatory bridge for traditional finance, offering tools for compliant asset tokenization missing in competitors. While its niche focus limits broad DeFi appeal, it aligns with growing institutional RWA demand. How might evolving global securities regulations shape its adoption versus multipurpose chains?