[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 active incentive programs for LSD yield leveraging strategies.
- Type
- parameter change
Key changes
- Increase MaticX supply cap from 50.60M to 62M units on Polygon V3(high)
- Supply cap would represent approximately 75% of current total MaticX supply (83.31M)(medium)
Notable concerns
- Supply cap utilization reached 88% only days after previous increase (AIP-278), indicating rapid consumption patterns
- Increase is contingent on approval from at least one service provider under Direct-to-AIP framework
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 describes a single, well-defined parameter change: raising the MaticX supply cap on Polygon V3 from 50.60M to 62M. The decoded on-chain action is a single execute(address) call routed through Aave's standard cross-chain governance executor, passing the address of a payload contract. This is the normal pattern for Aave governance actions that ultimately execute on Polygon (the executor forwards execution to a payload deployed at the given address, whose bytecode contains the actual cap-update logic referenced in the proposal's 'Implementation' link). Because the decoded calldata only shows the executor call and the payload address — not the internal logic of that payload — it is not possible to directly verify from the calldata alone that the payload sets the cap to exactly 62,000,000 units. However, this opacity is expected and standard for this proposal type; there is no indication of a mismatched target, an unexpected recipient, or an extra/missing action. Given the inability to fully verify the specific numeric parameter from the decoded action, confidence is low, but nothing in the available data contradicts the description, so no discrepancy is flagged.
Generated by Kvorum
04Actions
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0xF8ad3689E88cFEC0AFa82b65681336140574Dd69" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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