Sandeep Nailwal, co-founder of Polygon, has officially stepped into the role of CEO of the Polygon Foundation — a move signaling both a leadership transformation and a bold strategic reset for one of Ethereum’s earliest and most influential scaling solutions.
This leadership shift marks a return to roots. Nailwal was instrumental in launching the project back in 2017, when it operated under the name Matic Network. Now, as CEO, he’s poised to reinvigorate the ecosystem with a renewed focus on innovation, interoperability, and long-term sustainability.
A New Era for Polygon: Leadership and Vision
Under Nailwal’s guidance, the Polygon Foundation will take centralized control over strategic direction, ecosystem development, and governance initiatives. The foundation oversees Polygon Labs and other affiliated teams, ensuring alignment across the network’s expanding infrastructure.
The official announcement emphasized that this transition is not just about personnel — it's about purpose. “This renewed control marks the beginning of a strategic push for Polygon to reclaim its position at the forefront of Web3,” the team stated in a press release.
Nailwal’s vision centers on AggLayer, Polygon’s next-generation cross-chain liquidity protocol. Designed to unify fragmented liquidity across multiple blockchains, AggLayer aims to deliver seamless interoperability — a critical missing piece in today’s multi-chain landscape.
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Why the Shift? Responding to Market Realities
Polygon initially gained traction by offering a fast, low-cost proof-of-stake (PoS) sidechain for Ethereum. At its peak in June 2021, Total Value Locked (TVL) across Polygon networks reached $9.79 billion. Today, that figure has declined to approximately $1 billion — a drop of nearly 90%, according to DefiLlama.
The decline reflects broader market shifts. A new generation of Ethereum Layer-2 solutions — including Optimism and Arbitrum — has emerged, leveraging rollup technology to offer stronger security models and deeper Ethereum equivalence. These networks now dominate the scaling landscape.
Polygon’s own zkEVM rollup, once seen as a key competitive differentiator, currently ranks 27th among Layer-2 networks by TVL, per L2Beat. Facing persistent challenges related to developer adoption, architectural complexity, and performance bottlenecks, the team has made the difficult decision to sunset the zkEVM Mainnet Beta by 2026.
“To ensure a smooth transition, the sequencer will remain live for the next twelve months,” the foundation noted, allowing developers time to migrate.
Strategic Refocus: From zkEVM to PoS and Real-World Assets
With zkEVM being phased out, Polygon is doubling down on its flagship PoS chain — but with an evolved mission. The network is now targeting integration with real-world assets (RWAs), aiming to become a primary infrastructure layer for tokenized finance.
The foundation has teased an “ambitious roadmap” that includes transforming the PoS chain into a “gigagas” network — capable of processing up to 100,000 transactions per second and securing trillions in tokenized value. This performance leap would position Polygon as a scalable backbone for institutional-grade financial applications.
This pivot aligns with growing industry momentum around RWAs — from tokenized bonds and real estate to carbon credits and private equity. By focusing on this high-potential niche, Polygon aims to differentiate itself in an increasingly crowded Layer-1 and Layer-2 ecosystem.
Leadership Changes Reflect Strategic Reprioritization
The strategic overhaul also includes key personnel changes. Jordi Baylina, formerly Polygon’s zero-knowledge research lead, is departing to launch ZisK, an independent ZK-focused project. His exit underscores a shift away from standalone ZK rollup development toward broader aggregation and interoperability frameworks like AggLayer.
This mirrors broader trends within the Ethereum ecosystem. The Ethereum Foundation itself recently underwent leadership restructuring led by co-founder Vitalik Buterin, refocusing on long-term scalability and protocol resilience.
Nailwal acknowledged these parallel evolutions in a recent post on X, stating that Ethereum’s “existential crisis” prompted Polygon to revisit its core identity — embracing a more agile, bold “zero-to-one” mindset reminiscent of its early days.
Revitalizing POL: Governance, Staking, and Market Confidence
Central to Nailwal’s strategy is strengthening value accrual for POL, Polygon’s native token (formerly known as MATIC). POL holders can stake their tokens to help secure the PoS network and earn rewards — but more importantly, they play a growing role in governance and ecosystem decision-making.
Nailwal highlighted recent regulatory clarity as a catalyst for renewed market confidence. “The SEC has dropped its investigations and lawsuits related to MATIC as a security,” he noted — a development he believes was long overdue given the token’s functional role in network operations.
“This should never have existed given the nature of MATIC (and now POL),” he added. “We are excited to see several large market makers coming back to the table in recent days to make markets in POL, which strengthens the liquidity of POL on exchanges globally.”
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Core Keywords Driving Polygon’s Future
The strategic pivot hinges on several core themes:
- Polygon AggLayer
- POL staking
- Ethereum scaling
- Real-world assets (RWAs)
- Cross-chain interoperability
- Proof-of-stake (PoS) blockchain
- Web3 infrastructure
- Layer-2 solutions
These keywords reflect not only technical priorities but also user intent — from developers seeking scalable deployment options to investors evaluating staking yields and ecosystem health.
Frequently Asked Questions (FAQ)
Q: What is Sandeep Nailwal’s background with Polygon?
A: Sandeep Nailwal is a co-founder of Polygon, originally launched in 2017 as Matic Network. He played a central role in developing the project’s early architecture and go-to-market strategy before stepping back from day-to-day operations. His return as CEO signals a recommitment to Polygon’s original vision with updated technological direction.
Q: Why is Polygon shutting down zkEVM?
A: Despite technical promise, zkEVM faced challenges including low developer adoption, architectural limitations, and stiff competition from more mature rollups like Arbitrum and Optimism. The decision allows Polygon to redirect resources toward AggLayer and its enhanced PoS chain.
Q: What is AggLayer and how does it work?
A: AggLayer is Polygon’s cross-chain liquidity protocol designed to unify assets and messaging across multiple blockchains. It enables seamless interoperability without relying on traditional bridges, reducing fragmentation and improving capital efficiency.
Q: How will the focus on real-world assets impact Polygon?
A: By targeting RWAs — such as tokenized bonds, real estate, and commodities — Polygon positions itself at the intersection of traditional finance and decentralized infrastructure. This opens new revenue streams and attracts institutional participation.
Q: Is POL a good staking asset?
A: With improved liquidity, clearer regulatory status, and enhanced utility through staking and governance, POL is regaining investor confidence. Stakers contribute to network security while earning yield — making it an attractive option for long-term holders.
Q: What does “gigagas network” mean?
A: The term refers to Polygon’s goal of achieving ultra-high throughput — up to 100,000 transactions per second — enabling enterprise-scale applications and mass adoption without congestion or high fees.
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Final Outlook: Reclaiming Web3 Leadership
Polygon’s transformation under Sandeep Nailwal isn’t just a change in leadership — it’s a recalibration of purpose. By retiring underperforming initiatives, refocusing on proven strengths, and targeting high-growth sectors like RWAs and cross-chain interoperability, Polygon is positioning itself for a comeback.
The road ahead won’t be easy. Competition remains fierce, user expectations are higher than ever, and technological execution must be flawless. But with Nailwal back at the helm and a clear roadmap in place, Polygon may well be on track to reclaim its status as a leader in Ethereum scaling and Web3 infrastructure.