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Polygon Foundation Accused of Token Misallocation by ChainArgos

Polygon Foundation, the organization behind Polygon, a leading Layer 2 scaling solution for Ethereum, has been accused of lacking transparency in its token allocation by ChainArgos, a blockchain data and analytics firm. According to ChainArgos, the Staking Contract, which is supposed to receive a fixed amount of tokens from the Foundation every month, did not receive the full amount as planned.

Specifically, instead of having a balance of 400 million tokens initially and increasing to 1.2 billion tokens over time, the actual balance was between 0 and 800 million tokens. ChainArgos claims that the missing 400 million tokens were transferred from the Foundation’s wallet to Binance, a major cryptocurrency exchange (specifically, the address Binance 33).

The address that received the 400 million tokens was not a Staking wallet, as the token balance did not change over time.

Later, 300 million tokens from Binance 33 were transferred to another address, “0x2f4…9719c”. In addition, this address also received 467 million tokens from “Matic: Marketing and Ecosystem” before transferring the total of 767 million tokens back to Binance.

This phenomenon reminded many people of the incident involving Arbitrum Foundation in April 2023. At that time, 750 million ARB tokens that were supposed to be allocated to DAO Treasury were instead transferred to Arbitrum Foundation’s wallet and the final destination was also Binance, a centralized exchange (CEX)3. This move sparked a lot of controversy and forced the organization to create proposals to the community to resolve the issue.

At the time of writing, Polygon Foundation has not responded to the tweet from ChainArgos.

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