Polygon Foundation Lacks Transparency in Token Allocation

The Polygon Foundation lacks transparency in token allocation

The ChainArgos data tracking unit indicates that the Staking Contract is not receiving the allocated amount of tokens as outlined in the plan. Specifically, instead of having a balance increasing from the initial 400 million tokens to 1.2 billion tokens, the actual figures range from 0 to 800 million tokens.

8/ But staking? Here is cumulative flow in to the staking contract.

Note this starts in June 2020 around when the contract was deployed. And it runs from 0 to 800mm.

The allocation table tells us it should go from 400mm to 1.2b. pic.twitter.com/St6cO68Hc4

— ChainArgos (@ChainArgos) January 15, 2024

This unit believes that the missing 400 million tokens mentioned above have been transferred from the Foundation’s wallet to the Binance platform (specifically, the Binance 33 address).

9/ Now go back and look at foundation outflows. The “missing” 400mm looks to go to an address labelled Binance 33 on etherscan.

Here is a chart of cumulative flow from the foundation to Binance 33.

The chart is simple: one flow of 400mm in and that is it. pic.twitter.com/z3LDLPnWwQ

— ChainArgos (@ChainArgos) January 15, 2024

The address receiving the 400 million tokens is believed not to be the Staking wallet, as the token balance remains unchanged over time.

Subsequently, 300 million tokens from the Binance 33 wallet were transferred to the address “0x2f4…9719c.” Furthermore, this address received an additional 467 million tokens from “Matic: Marketing and Ecosystem” before transferring the total of 767 million tokens back to Binance once again.

This occurrence has drawn comparisons to the Arbitrum Foundation incident in April 2023. At that time, 750 million ARB tokens, instead of being allocated to the DAO Treasury, were transferred to the Arbitrum Foundation’s wallet and eventually ended up on the Binance CEX platform. The actions of the Arbitrum Foundation sparked controversy and led the organization to continuously propose solutions to the community to address the issue.

As of the time of writing, the Polygon Foundation has not provided any response to the mentioned tweets. Further developments will be promptly updated by azc.news for readers.