[ARFC] Increase MaticX supply cap
01Summary
Proposal to increase MaticX supply cap on Polygon V3 from 50.60M to 62M units (~22.5% increase) due to high utilization (88%), increased MaticX total supply, and to support ongoing LSD yield leveraging incentive programs and DAO revenue generation.
- Type
- parameter change
Key changes
- MaticX supply cap increase from 50.60M to 62M units on Polygon V3 market(high)
- Supply cap utilization reduction from 88% to approximately 74% of total MaticX supply (83.31M)(high)
Notable concerns
- Supply cap has historically filled quickly after increases
- Proposal relies on continued incentive program by Polygon Foundation
Generated by Kvorum
02Description
Simple Summary
This proposal seeks to increase the supply cap for the MaticX token from 50.60M units to 62M units as: - Supply cap utilization reached 88% - The MaticX supply increased since the last AIP on the subject - LSD yields leveraging is one of the main sources of revenue for the DAO - An incentive program is currently taking place regarding the above strategy If this proposal gets the green light from at least one service provider it will continue following the Direct-to-AIP framework.
Motivation
The supply caps utilization climbed to 88% recently only a few days after the last increase. Historically supply caps for LSD tokens have quickly been filled up, leading to the implementation of the direct-to-AIP framework, but still, proactivity from the DAO is needed for the smooth experience of the users. Since the total supply of MaticX increased since AIP-278, it is possible to increase the supply cap up to 62M while remaining below 75% of the total supply.
Currently, the DAO reserve is increasing by ~870 Matic a day thanks to users borrowing Matic, a sizable portion of them are doing so with MaticX token, increasing the MaticX cap would increase the demand for this asset and potentially attract more liquidity for it.
Last but not least, an incentive program by the Polygon Foundation is currently running its course on Polygon V3 market, promoting the use of LSD yield leveraging with the MaticX tokens. Thus, this increase would also enhance the synergy with the rest of the ecosystem that is being built around this farming strategy.
Specification
The following parameters would be modified for the MaticX token on the polygon V3 market:
| Parameters | Current | Proposed | Increase |
|---|---|---|---|
| Supply Cap | 50.60M | 62M | ~22.5% |
This would be a bit less than 75% of the current total supply (83.31M)
References
- Implementation: Polygon
- Tests: Polygon
- [Snapshot] No snapshot for Direct-to-AIP
- Discussion
Disclaimer:
This proposal is powered by Skyward. The author doesn’t possess MaticX tokens at the time of writing and isn’t paid by the Polygon foundation for this ARFC.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows Aave's standard Direct-to-AIP governance pattern: a single on-chain action calling execute(address) on a governance executor, which delegatecalls to a payload contract containing the actual parameter changes (in this case, the MaticX supply cap update). The decoded calldata only exposes this top-level execute() call and the payload contract address — it does not expose the internal logic of the payload (i.e., the specific new supply cap value), since that logic lives in the target contract's code rather than in the governance calldata itself. This is the normal and expected structure for this type of Aave proposal, and the referenced GitHub implementation link in the description corresponds to this exact pattern (a dedicated payload contract for a caps update). Because the specific numeric cap change (50.60M → 62M) cannot be independently verified from the calldata alone — it is only visible by inspecting the payload contract's bytecode/source — confidence is set to medium rather than high. However, there is no evidence of a target mismatch, hidden extra action, or value distortion within what is decodable; the single action is consistent with the described single-parameter cap increase. No omitted, extra, or misleading claims were found in the description relative to what is visible on-chain, so this proposal is assessed as consistent with medium confidence due to the inherent opacity of the payload execution pattern.
Generated by Kvorum
04Actions
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x5C748a7Ac5390ee6C9E0511bafd4Ec95183E496a" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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