Matic’s Price Crumbles 20% Amid Mainnet Launch
Despite beginning its mainnet rollout today, the price of Matic has fallen 20% in 48 hours — shedding nearly all gains made during the week leading into the launch.
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Decentralized application (DApp) platform Matic Network (MATIC) has successfully launched its mainnet following two and a half years of development.
A June 1 blog post published by Matic notes that mainnet will be deployed over a series of phases to “ensure that the mainnet deployment and validator onboarding is achieved as smoothly as possible.”
“More impantly, it ensures that right from day 1 that DApps are able to deploy their products successfully on Matic,” the post adds.
MATIC crashes 20% in two days
Despite Matic Network launching the first phase of its mainnet rollout, the price of MATIC has fallen by roughly 20% since trading for $0.260 on May 29.
MATIC/USDT on Binance: TradingView
The crash saw MATIC drop 30% to test $0.200. The token has since rebounded 8%, however, and is trading for $0.216.
The downward move has reversed most of MATIC’s 38% rally from last week.
Matic enter first phase of mainnet rollout
The first step of the rollout will see the Delegated Proof-of-Stake (DPoS) network operate with a restricted set of validators.
Currently, Matic Foundation has deployed all seven of the network’s operational nodes. However, “any rewards earned by Foundation nodes will go back into the staking pool.”
Ether (ETH) and ERC-20 tokens are also interoperable between the Matic Network and Ethereum chains.
DApp partners to deploy nodes next
Before proceeding to the second phase of mainnet rollout, Matic intends to ensure that that DApps can be deployed and conduct multiple rounds of security reviews.
DApp partner nodes are set to begin joining the network in batches of between five and ten from this week onwards, with the post stating:
“Nodes from select validators who have been working closely with the Matic team, which include professional validators and marquee DApps, have been shortlisted and will be onboarded to the mainnet soon.”
Once the network’s DApps have successfully gone live and onboarded users, Matic Foundation’s nodes will be turned off — with the network re-delegating to public validators who will operate Matic’s nodes from then on.
