Polymarket's Own Blockchain: When and Why Is Now the Right Time?

On December 22, a heated discussion erupted in the market—The Polymarket team announced on Discord their plan to build their own Ethereum Layer2 network called POLY. This is not just a technical step; it is a strategic pivot that demonstrates how top applications in the industry are evolving.

Market Need and Demand

Moving away from the base layer is not just a decision. With user needs and preferences constantly changing, the old base layer network is no longer sufficient to meet the requirements of rapidly growing platforms. As a leader in the prediction market segment, Polymarket has faced limitations that could not be avoided if it continued to accept the status quo.

Polygon, once a key partner, has shown issues—network instability and insufficient ecosystem support have become barriers to scaling. For a platform generating $1.538 billion in trading volume in a single month, any network downtime directly harms the business.

Economic Impact: The Numbers Speak

Before migrating, Polymarket already left a significant mark on the Polygon ecosystem. The data is clear:

In user activity: The current 419,309 active users and 19.63 million transactions per month provide direct support to the network. Overall, it has reached 1.766 million users and 115 million transactions.

In network resources: The $326 million locked value reflects approximately 27% of Polygon’s total TVL of $1.19 billion. In terms of network consumption, Polymarket accounts for nearly a quarter of gas—$216,000 out of the $939,000 total gas spending in November.

These numbers are not just figures. The demand and preferences of Polymarket users for fast, cheap, and reliable transactions drive a large portion of network activity. But there are many other less visible values—ongoing liquidity needs for USDC, ecosystem benefits from retained users trying other DeFi products, and the brand value brought by high trading volume.

Flexible Architecture and Competitive Advantage

Having its own Layer2 means control. It’s not just about seeking a more stable foundation, but also about the ability to customize base layer features according to the platform’s specific needs.

By upgrading to its own network, Polymarket can achieve:

• Faster settlement for prediction contracts
• Optimized fee structure for high-frequency traders
• Customized governance that directly responds to user needs and preferences
• Full control over the economic model and token distribution

This flexibility is critical for the future—when iteration or innovation is needed, reliance on third-party base layer limitations is no longer an option.

Strategic Timing: TGE Coming Soon

The question is no longer “should they,” but “why now?”

The answer is focused on the upcoming Polymarket TGE. Once the token is launched, governance structures and incentive mechanisms will become more solid. Migration will be more difficult and costly after launch, so now is the perfect window—while ecosystem governance can still be refined during the transition.

Furthermore, shifting from “single application” to “application plus blockchain infrastructure” fundamentally changes the valuation narrative. The own Layer2 opens new potentials in capital markets and ecosystem partnerships.

Deeper Implications

This exodus is not unique to Polymarket. It reflects a deeper trend—when top applications gather enough users, traffic, and economic activity, their needs and preferences become more powerful than any base layer. If the base layer cannot provide a significant advantage, there is no reason to stay.

In economic terms, this is a natural application of survival logic. Every platform strives to control its value chain. Polymarket is no exception—it is a tactical response to the evolving needs and desires of the market.

The crypto industry continues to reorganize. This is not an attack; it is adaptation.