Polygon, a prominent Ethereum layer-2 scaling solution, has experienced several leadership departures recently. With MATIC prices so low, some investors become scared that there are things happening behind the scenes. This may be a sign of weak leadership or chaotic management. Why are high executives leaving Polygon every so often?
High Executives Leaving Polygon
One of the notable exits is from a co-founder who played a pivotal role in the company’s inception in 2017. He mentioned, “About half a year ago, I decided to step back from the day-to-day operations,” in a recent post. While expressing his continued support for Polygon, he revealed his shift in focus to two new ventures, Morphic and Mozak, which appear to be connected to generative Artificial Intelligence and media.
Another co-founder responded with well wishes, commenting on their shared journey and hinting at the natural progression of professional paths. Earlier in the year, another foundational member left after a five-year stint, joining Avail, a modular blockchain emerging from Polygon Labs. Additionally, Polygon’s former president made an exit announcement, with the chief legal officer stepping in as his successor. Despite stepping down, the ex-president plans to continue advising Polygon and maintaining his investments within the sector.
Operational Changes
Earlier this year, as part of a consolidation move, Polygon disclosed its strategy to reduce its workforce by approximately 20%, affecting nearly 100 employees.
Polygon’s Innovations and Future
Polygon addresses Ethereum’s challenges, like scalability and transaction costs, through several innovative methods, including customizable sidechains parallel to the Ethereum mainnet. They recently launched their zkEVM rollup on the Ethereum mainnet and unveiled plans to transition its proof-of-stake chain to a validium solution. A co-founder emphasized their belief in ZK proofs as the path forward.
Despite these changes, Polygon’s native token, MATIC, remains strong, ranking as the 13th largest cryptocurrency by market capitalization. However, it has seen a 40% decrease in value over the past year.