• Polygon Labs sent an open letter to EU lawmakers asking them to consider its amendments in Article 30 of the Data Act.
• The amendments exclude software and software developers, and argue that the act should apply only to permissioned systems, not decentralized permissionless ones.
• Polygon Labs argued that considering its amendments would “ensure” that the Data Act spares permissionless smart contracts.
Polygon Wants EU to Amend Data Act
Polygon Labs has sent an open letter to EU lawmakers asking them to consider its proposed amendments in Article 30 of the Data Act. The developer of the blockchain said that the act should apply only to permissioned systems, not decentralized permissionless ones. Polygon Labs‘ amendments also exclude software and software developers, with the goal of ensuring that the Data Act spares permissionless smart contracts.
Background on Crypto Regulation
The current crypto bear market has shown regulators are coming into play, whether industry players like it or not. That is why it is essential for crypto firms to work with regulators instead of against them. An example of collaboration between crypto industry players and regulators is Polygon’s recent open letter regarding how the Data Act applies to smart contracts.
Proposed Amendments by Polygon Labs
In their letter, Ledger and Polygon Labs argue that Article 30 should be amended so that it applies only to permissioned smart contracts and not decentralized, permissionless ones. Article 30 states that smart contracts must have a „safe termination or interruption“ mechanism built-in (i.e., a kill switch). Imposing this requirement can have negative consequences for permissionless systems according to Polygon Labs, who is proposing its own revisions which excludes mention of software developers and applies only to enterprise-level permissioned smart contracts instead.
Implications on Smart Contract Security
If adopted, these amendments could potentially provide a secure environment for both developers and users when dealing with decentralized applications (dApps) powered by smart contracts. Furthermore, this could lead more people feeling comfortable using dApps since they would know there are safeguards in place if something goes wrong with a particular contract or system as a whole due its regulated nature under this new law proposed by Polygon Labs in their open letter addressed towards European Union officials..
In conclusion, it will be interesting to see how European Union lawmakers respond towards this proposal from Polygon Labs regarding how they want Article 30 modified in order for it better accommodate users when engaging with dApps without hindering innovation within the space as well as granting sufficient security measures needed for such projects going forward if approved at some point down the line..