Polymesh (POLYX) is a distinctive blockchain platform specifically designed to cater to the needs of security tokens. It's an institutional-grade, permissioned blockchain that aims to revolutionize the way regulated assets are managed by addressing key challenges around governance, identity, compliance, confidentiality, and settlement. This focus makes it particularly suitable for creating, issuing, and managing security tokens within a regulatory-compliant framework.
POLYX, the native token of Polymesh, fuels the ecosystem, serving multiple roles, including transaction fee payments, governance participation, and securing the network through staking. POLYX is recognized as a utility token under Swiss laws, guided by the Swiss financial regulator FINMA. Its role within the Polymesh ecosystem is well-regulated and designed to support its operations effectively.
One of the key features of Polymesh is its governance model, which employs a Nominated Proof-of-Stake (NPoS) consensus mechanism. This model encourages collaboration between node operators and stakers to enhance the security and functionality of the network.
Notably, node operators must be permissioned and licensed financial entities, a requirement that increases network security by associating it with entities that have significant reputational risk. The ecosystem supports a democratic governance system, allowing POLYX holders to submit improvement proposals and vote on them, further ensuring the network evolves in alignment with its community's needs.
Polymesh distinguishes itself by focusing on the security token sector. This choice sets it apart from many existing blockchains that either serve a broader range of purposes or operate as layer 2 solutions atop other blockchains. It aims to improve the security token industry by integrating features for identity verification, compliance automation, confidential transactions, and instant settlement directly into its protocol. These features are designed to meet the stringent requirements of regulated markets, making Polymesh a purpose-built solution for securities.
