Polygon Co-Founder Sandeep Nailwal Takes Control As Foundation CEO During Strategic Overhaul
CoinDesk reports that Polygon co-founder Sandeep Nailwal has officially assumed the role of CEO of the Polygon Foundation on June 11, 2025. Nailwal will consolidate control and reorient the team toward AggLayer, Polygon's cross-chain liquidity protocol. The appointment comes as Polygon plans to shut down its zkEVM network in 2026 due to low adoption and will double down on its flagship proof-of-stake sidechain.
Leadership Restructuring Amid Competitive Pressures
According to Bloomberg, the appointment stems from a need to make faster decisions in light of mounting competition in the blockchain space. Nailwal, who launched the project in 2017 when it was called Matic Network, will steer long-term planning and guide key ecosystem initiatives to deliver exponential growth and greater value to POL stakers.
The Block notes that Nailwal is the last remaining co-founder of Polygon following the recent departure of Mihailo Bjelic. Co-founders Jaynti Kanani and Anurag Arjun stepped back from the project two years ago. This consolidation of leadership represents a shift away from the decentralized governance model the organization had previously embraced.
The reorganization mirrors changes at the Ethereum Foundation, which recently restructured its leadership and revamped its roadmap in a process led by Ethereum co-founder Vitalik Buterin. Nailwal cited Ethereum's existential crisis as motivation for Polygon to return to a bolder, more nimble, and more decisive zero-to-one mentality.
Network Performance And Strategic Challenges
Polygon has faced declining performance metrics that necessitated this strategic reset. Total value locked across Polygon networks has fallen to around $1 billion, down nearly 90% from its June 2021 peak of $9.79 billion according to DefiLlama data. The network has ceded ground to new Ethereum scaling networks, particularly layer-2 rollups like Optimism and Arbitrum, which offer similar user experiences with tighter Ethereum compatibility.
Cointelegraph reports that Polygon's zkEVM experiment is being phased out, ranking just 27th by TVL among layer-2s according to L2Beat data. The zkEVM Mainnet Beta will be sunset in 2026, with the sequencer remaining live for twelve months to ensure a smooth transition.
As part of the strategic reset, Polygon will focus on its flagship PoS sidechain, now targeting real-world financial assets. The foundation outlined an ambitious roadmap to transform the chain into a gigagas network capable of processing 100,000 transactions per second and securing trillions in tokenized assets.
Market Context And Competition
The leadership change occurs within a highly competitive layer-2 ecosystem. KuCoin Learn data shows Ethereum layer-2 networks have garnered a combined Total Value Locked of $38.75 billion, with layer-2 solutions addressing limitations of Ethereum's current infrastructure in handling large transaction volumes.
Recent market developments show continued growth in the scaling solutions sector. Dexola research indicates that implementation of proto-dank sharding across major L2s could potentially reduce fees by up to 90% by 2025, while specialized L2s for specific use cases are emerging, particularly in AI computation and privacy applications.
The competitive landscape has intensified with Uniswap founder Hayden Adams calling for Ethereum to adopt a more forceful and unified strategy toward Layer-2 scalability, citing growing competition from fast, low-fee challengers like Solana.
Industry Implications And Future Outlook
The Polygon reorganization reflects broader trends in the blockchain scaling ecosystem. Zero-knowledge technology continues gaining traction for addressing dual challenges of privacy and scalability in blockchain technologies. Gate.io analysis shows the ZKP market is expected to exceed $5 billion by 2025, driven by regulatory tailwinds and technological advancements.
Enterprise adoption remains a key focus area. Privacy concerns and regulatory requirements continue driving demand for zero-knowledge solutions that enable businesses to utilize blockchain technology while protecting sensitive data. The EU's GDPR and global privacy laws align with ZKP principles, encouraging adoption across finance, healthcare, and supply chain sectors.
For traditional financial institutions, Polygon's pivot toward real-world assets represents both opportunity and competition. The platform's ambition to secure trillions in tokenized assets positions it to capture value from the growing tokenization trend, though success depends on execution of the technical roadmap and maintaining competitive advantages against rival scaling solutions.
The consolidation under Nailwal's leadership suggests a more centralized decision-making structure that could accelerate development but may concern proponents of decentralized governance. The outcome will test whether traditional corporate leadership models can successfully navigate the complex dynamics of blockchain ecosystem development while maintaining community support and developer adoption.
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