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Matic

Matic Network - scaling solution for the Ethereum and other blockchains using Plasma with PoS and side chains

Rating: 3.8

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks:
Product source tracking: https://github.com/maticnetwork
Details Description Risks Full analysis Team

Detailed review

Stage of product development
Roadmap
June, 2019
Mainnet (alpha), Plasma cross-asset swaps on testnet, Validators onboarding
August, 2019
Mainnet (beta), Plasma cross-asset swaps on mainnet, Smart-contract support, Plasma-Watcher nodes
March, 2020
Mainnet, Plasma - NFT Marketplace platform release (Ethereum)
Token description
ICO date
TBA
Token price
0.00079 USD - seed investors
0.00263 USD - Binance Launchpad investors
Platform
Binance Launchpad
Hard cap
5000000
Capitalization of token pool
28000000
Blockchain
Matic
Token distribution date
N/A
Consensus method
PoS
Escrow
N/A
ICO currencies
Bounty camping
N/A
Markets
N/A
Token functions
Reward for node and fee
Tokens distribution
Binance Launchpad allocation (19.0%)
Private Sale and Seed (5.89%)
Team (16.0%)
Advisors (4.0%)
Network (12.0%)
Foundation (21.86%)
Ecosystem (23.23%)
Risks
MARKET

- Strong competition with another scaling solutions

PRODUCT

- lots of work done is available for testing only internally (followers and investors can only trust)

BUSINESS MODEL
FINANCES

- 70% discount to early investors

- 26M USD valuation for Binance Launchpad investors is high

TEAM

- competitors' teams are stronger

Full analysis
Market

Scaling solutions were always popular in the blockchain industry, but the 2-layer solutions are becoming more popular with the success of Lightning Network on the Bitcoin network.

Matic competes with other 2-layer solutions and other high-TPS blockchains. The closest competitor is POA also focused on scaling Ethereum. POA is already working, but Matic offers higher parameters and functionality (including higher TPS).

Matic has partnerships with Decentraland, Quarkchain, Ankr, Portis, MakerDAO - all are with explanations and rational ground for partnerships.

Product

Matic is a part of the 2-layer infrastructure above the blockchains and it conveys lots of computations off-chain - for Ethereum both transactions and smart-contracts may be computed off-chain. Both users and developers may use Matic to speed-up their activity in blockchains. Transactions and computations off-chain remain secure and supported by PoS.

Potentially, Matic may support other blockchain protocols with its sidechain solution.

Tests indicate that the network will have about 7000 TPS that is enough for users.

Lots of work is already done - mobile app, node design, assets swaps. Also, the project announced external use cases by other team using Matic - mainly in gaming industry. The project has a testnet and even an early version of mainnet (according to announcements). The next step before the sale is launching a Plasma wallet. Mainnet is expected to Q4 2019, Plasma support on mainnet - Q3 2019, 

Business model

Matic network will be supported by PoS algorithm design, so the circulation supply may be lower than expected. Tokens are rewards for holders and are used as a feed for transactions. Node system is two-layer as well with Block producers (7-10) and Validators (100-200). For TGE ERC-20 token will be used.

Finances

Early investors have about 8% of tokens in allocations (70% discount). For TGE on Binance Launchpad, 19% of tokens will be available.
Matic aims to raise 5M USD, so the valuation for Launchpad participants is 26M USD (comparing with 7.89M USD for early investors).
The initial token supply will be limited by only 30% of tokens in circulation. The first strong boost of supply is expected in September-October 2019 by early investors, team unlock. Other supply unlock are expected to be every half-year.

We see this project a bit weaker in comparison to other Binance Launchpad projects. Also, the Binance Launchpad participant must be aware of the strong discounts to early investors.

The tokensale will test a lottery type requiring holding BNB tokens

Team

The team includes 12 members (9 focused on tech and 3 on back-end stuff).

Jaynti Kanani - 4 years as a Software engineer in India, 3 years as a Data Scientist in Housing.com, main contributor to the Plasma development on Github
Sandeep Nailwal - 2 years as a Software Engineer in CSC, 1 year in Deloitte, 1 year as a Head of Technology in Welspun Group, 2 years in the blockchain industry (ScopeWeaver founder).
Anurag Arjun - product manager in IRIS (3 years), product manager in Dexter Consultancy (5 years)
Bhavir Shah - software engineer in Housing.com (2.5 years), 2 years as a software engineer in other companies

Interesting advisors are Pete Kim (Coinbase Head of Engineering), Esteban Ordano and Ari Meilich (both from Decentraland)

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