Summary

Polymesh is a publicly licensed Layer 1 blockchain focused on improving the security token industry. Adopting the utility token POLYX can reward and punish participants in the blockchain ecosystem accordingly to increase the security of the blockchain. POLYX also facilitates governance and staking within the ecosystem.

Introduction

Securities are tradable financial instruments with actual value. The multi-billion securities market is expected to see further growth after tokenizing securities. This will increase market efficiency and transparency, among other benefits.

Tokenized securities or security tokens are issued in blockchains such as Polymesh. Polymesh is an institutional-grade blockchain tailored for regulated assets such as security tokens.

What is Polymesh?

Polymesh is a Layer 1 public permissioned blockchain built specifically for security tokens. Security tokens are digital contracts that are part of assets with real value.

As a publicly permissioned blockchain, anyone can view the network. However, users must complete an identity verification process to participate. This certification process applies to all participants on the chain, including issuers, investors, pledgers, node operators, etc.

Especially node operators must be licensed practicing financial entities. This improves network security, as these entities face greater reputation risk than unidentifiable actors.

Market participants in Polymesh can not only enjoy the unique advantages of a permissionless private network, but also enjoy complete transparency while ensuring transparency. Trust the network.

How does Polymesh work?

Node operators and stakers collaborate to ensure the security of the Layer 1 blockchain and verify blocks.

Node operators who successfully verify the block will be rewarded with Polymesh’s utility token POLYX. Stakers pledge their own POLYX to node operators, which can increase the latter's chances of being selected into the validator pool every 24 hours. When the commission charged by the node operator reaches 10%, stakers will receive POLYX.

Polymesh security

Polymesh uses the Nominated Proof-of-Stake (NPoS) consensus model developed by Polkadot to clarify the network’s roles, rules, and incentives. This system can effectively improve the security of the blockchain, making it difficult and costly to perform harmful actions. Through this mechanism, node operators and stakers receive POLYX rewards or are punished based on their performance.

Polymesh's fee structure

Many permissionless public blockchains There are fee markets where fees can change rapidly in seconds. For example, users competing for space in the blockchain to run code or store data (i.e., block space) will result in high fees.

Polymesh charges based on on-chain weight (in bytes) and transaction complexity, keeping transaction costs low. and consistency, and Polymesh Governance has the right to adjust rates. The Polymesh Governance democratic system consists of the main stakeholder committee, the Polymesh Governance Committee, and POLYX holders.

The Polymesh Governance Committee sets and charges protocol fees for certain native features, such as retaining token code. Fee payment is split between the Network Treasury (maintained by Polymesh Governance) and the node operators in a ratio of 4:1. Network Treasury funds are typically used to improve or protect network security.

What is unique about Polymesh?

Polymesh is one of the few Layer 1 blockchains specifically built for security tokens. Currently, most securities-focused projects are Layer 2 initiatives built on existing blockchains such as Ethereum or Solana. Polymesh is an independent Layer 1 blockchain.

With its infrastructure, Polymesh hopes to improve by overcoming the challenges of governance, identity, compliance, confidentiality and settlement. Security token industry.

Governance

Polymesh Built on the Substrate framework, utilizing seamless upgrades to provide a fork-free architecture, so there will always be only one version of the chain. The on-chain governance model consists of a committee of key stakeholders that can easily resolve any issues.

Identity

With Unlike most public blockchains where everyone can participate, Polymesh forces all individuals or entities participating in the network to go through an identity verification process and generate an on-chain identity. On-chain interactions can be traced back to known real-world entities.

Compliance

The ability to create and manage security tokens is built into the base layer of the blockchain. Additional features such as compliance and rules are optional and can be automated and enforced at the token level through smart contracts.

Confidentiality

Polymesh’s protocol MERCAT (an acronym for “Mediated, Encrypted, Reversible, Secure Asset Transfer”) supports the issuance and transfer of confidential assets. Users can maintain transaction privacy without sacrificing compliance or transparency with Polymesh.

Settlement

On-chain through Polymesh Settlement engine, two-way transaction confirmation and near-instant final confirmation, both on-chain and off-chain assets can be settled instantly.

What is POLYX?

POLYX is the native token of Polymesh. According to the guidance of the Swiss financial regulator FINMA (Swiss Financial Market Supervisory Authority), the currency is classified as a utility token under the country’s laws. POLYX is used for governance, chain security through staking, and the creation and management of security tokens.

Governance

Governance Advancement via Polymesh Governance. Any verified POLYX holder can influence the direction of Polymesh in two ways: submitting a Polymesh Improvement Proposal (PIP) or voting using POLYX. To submit a Polymesh improvement proposal, users must bind POLYX with Polymesh Governance. Once approved, the Polymesh improvement proposal will be voted on by the Governance Committee for implementation.

Pledge

Any Verified POLYX holders can participate in staking by binding POLYX to a selected node operator to increase that operator’s odds of receiving rewards.

Polymesh Ecosystem

Existing participants in the Polymesh ecosystem include A cryptocurrency trading platform, a veteran player in the tokenization space (Polymath), and a company with a sizable security token portfolio (RedSwan). The Polymesh Association aims to promote further development through two programs:

• Funding Program is available to individuals and companies building open source functionality in Polymesh.

• Ecosystem Development Fund is suitable for companies with integrated Polymesh closed source technology.

A wealth of information is available for developers who want to integrate Polymesh, including the Polymesh SDK library and Dedicated support channel for the community.

How to buy POLYX on Binance?

POLYX can be purchased through cryptocurrency exchanges such as Binance.

1. Log in to your Binance account and enter [Trading] -> [Spot].

2. Enter "POLYX" in the search bar to view the available trading pairs. Let’s take the POLYX/BUSD trading pair as an example.

3. Enter the quantity of POLYX you wish to purchase in the [Spot] box. Here we take market order as an example. Click [Buy POLYX] to confirm the order, and the purchased POLYX will be credited to your personal spot wallet.

Conclusion

In order to create a complete security token industry, the Polymesh team has developed business in multiple areas, including stablecoin infrastructure, non-fungible token (NFT) implementation, and the MERCAT protocol Confidentiality provided, and user guidance provided.