SX Network
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SX Network

Introducing SX Network

SportX combines the Polygon SDK, a rapidly growing on-chain treasury, a leading prediction market protocol, and a market-based governance system to become SX Network

Today, we are very proud to announce SX Network to our beloved SX community! SX Network is a big milestone for the Polygon ecosystem as well, as we aim to become the first project to launch a stand-alone blockchain using the Polygon SDK!

Executive Summary

We will be launching SX Chain and rebranding from SportX to SX Network.

SportX currently consists of:

  • SX Protocol — Set of smart contracts that powers SportX and governs non-custodial and peer-to-peer prediction markets (Github)
  • SportX — Consumer facing front-end prediction market application where users interact with the SX protocol (
  • SX Token — Governance token that manages the SX treasury and the rules of the SX Protocol (SX Token)
  • SX Treasury — On-chain fee pool that receives 55% of all SX, along with 100% of the fees generated by the SX Protocol (Treasury)

SX Network will consist of all of the above AND SX Chain

SX Chain — SX Chain will serve as the base layer for the entire network of SX applications including the SportX exchange.

✅ SX Chain Feels Familiar
SX Chain is an Ethereum Virtual Machine (EVM) compatible blockchain, meaning you will keep the same Ethereum wallet address, token names, block explorers and wallets.

SX Chain Compliments Polygon and Ethereum
SX Chain is being built in collaboration with Polygon, and will be tied to both Ethereum and Polygon for added security. SX Network TVL is also Polygon TVL!

SX Chain has an On-chain Ecosystem Fund
Leading Dapps wishing to launch on SX Chain can apply to the SX Treasury for funding, grants, or even a direct token swap. All funding decisions will be decided by SX token holders. This will help to ensure that applications running on SX chain are economically aligned with SX Network.

⏱️ SX Chain will be live in production within 90 days


The SX smart contract protocol and its associated front-end application (SportX) are one of the most widely used non-custodial prediction market platforms in the world; processing more than $40 million in volume across more than 500,000 bets since inception.

SX pioneered a number of innovative features to make this possible: non-custodial central limit order book liquidity, the first prediction market liquidity mining program, and the SX governed community treasury.

The SX Protocol was initially deployed on the Ethereum blockchain in March 2018, before leaving Ethereum due to high gas costs to become one of the first applications to launch on the Polygon PoS network back in September 2020. However, the protocol faces some long-term risks and limitations as a function of being on Polygon PoS:

  • Rising Gas Costs on Polygon. Gas prices on the Polygon PoS network are still extremely low, but they’ve increased by over 700x in USD$ terms since January 2021. This rise threatens to price out smaller transactions over time. Polygon is the dominant layer two platform for Ethereum and we strongly believe that it will stay that way; as it continues to rapidly grow, network demand and gas prices will naturally continue to grow as well.
  • Blockchain sovereignty. The SX Protocol currently has no control over network architecture. Like other generalized public blockchains, Polygon PoS wasn’t customized to support unique use cases such as prediction markets. SX Network will be customized for the prediction market use case and includes other features that SX is uniquely positioned to offer such as market-based governance.
  • Incentive alignment. SX Protocol may have differing incentives than other stakeholders in the Polygon PoS chain. As Polygon continues to grow, these differing interests could cause strain. Building SX Network aligns interests across all stakeholders in the ecosystem.

SX Network is a dramatic expansion of the vision behind SX protocol. It reimagines SX as a stand-alone public smart contract blockchain capable of serving as a key technology infrastructure for other prediction markets and related DeFi applications.

SX Network will be the first public blockchain to combine a smart contract platform with an on-chain community treasury and a native prediction market protocol.

SX Network combines these three characteristics to create a highly scalable EVM-compatible blockchain that uses a prediction market-based governance system for managing both its treasury and network parameters.

Why SX Network

There are three core characteristics that truly distinguish SX Network within the rapidly growing ecosystem of EVM-compatible blockchains: proven technology, on-chain treasury, and market-based governance.

Proven Technology

Polygon is a framework for building and connecting Ethereum-compatible blockchain networks. It is the dominant layer two network on Ethereum, supporting hundreds of blockchain applications and securing over $5 billion in assets.

Rather than re-inventing the wheel, SX Network leverages the Polygon SDK to build a highly secure and scalable public blockchain. Blockchain applications can deploy on SX Chain on day one knowing that its security and performance have already been battle-tested.

SX Chain is connected to other EVM-compatible chains while using Polygon and Ethereum as its main bridge

SX On-Chain Treasury

The vast majority of treasuries associated with public blockchains are opaque and run by centralized entities such as corporations (BlockOne) or foundations (Ethereum Foundation). Token holders have no rights nor say in the direction of these treasuries, nor do they benefit directly from the profits of any investments.

SX Network is natively integrated with the SX on-chain treasury, giving SX holders complete control and transparency into its operations. The SX treasury is extremely well-funded, with 53% of all SX token supply vesting to the fund over the next four years, which is equal to approximately $250m USD at current market prices. It will be used to fund initiatives such as:

  • Liquidity mining programs for applications running on-top of SX Network. This is particularly beneficial for projects that don’t yet have a token live or have tokens with relatively low market caps. It will also help incentivize other projects with established user bases to deploy on SX Network.
  • Promotional programs to bring users from other communities to the SX Network community. Promotional campaigns can include airdrops, paid media, influencer marketing, etc.
  • Technology development such as protocol parameter changes, blockchain research, or supporting application development.
The SX Treasury can fund liquidity mining, promotional campaigns, technology development, and more

Market-Based Governance

Public blockchains face challenges such as stakeholder alignment, funding, and upgradability due to their decentralized and open-source nature. The informal off-chain governance systems of open-source software aren’t well suited to manage this because of the large economic stakes that are involved and the coordination problems inherent in a decentralized network.

SX Network has unique solution to the age old problem of governance: the free market.

Utilizing the native SX prediction market allows us to create one of the world’s first market-based governance systems (also known as Futarchy). This involves using a token voting system to determine objectives, and then using a prediction market to determine the optimal policy for achieving that objective. By doing so, it prevents governance systems from political capture and replaces it with an objective, market-based system in which bettors with real skin-in-the-game, rather than politicians, make decisions. We will be publishing more research in the following weeks on our governance design.

Market action decides whether a proposal passes or not. If it doesn’t pass, bets are void. If it does pass, bettors that bet on it win their bets if the settlement rule is achieved by the expiration date, and vice versa.

Founding Principles

The founding principles of any blockchain dictate the type of community, culture, and governance systems in-place. These principles, in turn, determine the ultimate success of the project. The design behind SX Network is intended to follow the following three core principles:

Principle #1: Complementary

Complementary: SX Network growth will directly help drive growth in the Ethereum and Polygon ecosystems

SX Network is designed to be complementary — not competitive — with both the Ethereum and Polygon ecosystems. Both the core team and the underlying community built around SX are aligned — both economically and ideologically — with Ethereum and Polygon.

SX Network will have its own validator set and internal security model, but will tether its security to Polygon and Ethereum through frequent state checkpoints. Using the Polygon SDK, SX Network will further establish Polygon as the leading scaling and infrastructure platform of Ethereum. SX Network growth will benefit both Polygon and Ethereum.

Complementary: SX Network growth will directly help drive growth in the Ethereum and Polygon ecosystems

Principle #2: Incentive Alignment

Incentive Alignment: Resolving fundamental tensions that arise between stakeholders through the power of mutual ownership.

There exists a fundamental tension between holders of blockchain tokens and the native applications hosted on them. Token holders benefit from higher transaction fees, while applications are hurt by them. SX Network will resolve this fundamental tension by using the SX treasury to directly invest and fund the applications that run on SX Network, thereby acting as an on-chain ecosystem fund.

Applications on SX Network can apply for funding directly from the treasury, with funding decisions handled by SX token holders. Furthermore, projects can go one step further and actually do token swaps directly with the SX treasury so that SX Network and its underlying applications are fully, economically aligned.

Incentive Alignment: Resolving fundamental tensions that arise between stakeholders through the power of mutual ownership.

Principle #3: Skin-in-the-Game (SITG)

SITG: Individuals that make decisions for the collective must be the first ones to bear the consequences, similar to how a general leading army into battle faces the greatest danger being out in front.

The fundamental design philosophy guiding SX Network is the idea that any stakeholder that has the ability to majorly impact the direction of SX Network must have skin-in-the-game (SITG). This means they must have measurable risk when making major decisions, ensuring that decisions lead to fair, transparent, and efficient outcomes.

In particular, validators on SX network will be required to stake large amounts of SX in order to be part of the validator set, ensuring that they have the best interests of the network in mind. Furthermore, major governance decisions will be handled via the native SX prediction market, in which proposal backers will need to directly risk SX in order to pass desired policies.

SITG: Individuals that make decisions for the collective must be the first ones to bear the consequences, similar to how a general leading army into battle faces the greatest danger being out in front.

SX Network Overview

SX Network is a stand-alone smart contract blockchain built on the Polygon SDK. It is designed from the ground up for blockchain application developers with EVM-compatibility, low-cost transactions, and a PoS-based consensus model. SX Network supports any asset from public blockchains that utilize the EVM environment (e.g. ETH, MATIC) and supports the creation of native SX Network tokens.

SX Token

The SX token is the native unit of account on the SX Network and fulfills three core purposes on it:

  1. Serves as payment for transaction fees (i.e. SX Network gas costs)
  2. Staked by validators in order to validate transactions and earn fees
  3. Used as both a voting and betting currency in SX governance
The SX token is the native unit of account on the SX Network

SX Governance and Treasury Design

SX Network utilizes a transparent governance system in which SX token stakers can directly control network parameters and the on-chain SX community treasury via token voting. Over time, SX Network will increasingly shift to a market-based governance system in which staked SX tokens must be put up as collateral.

The SX treasury receives a portion of all transaction fees on SX Network, in addition to fees received from its token ownership in any underlying blockchain applications on SX Network. Some applications (such as the native SX protocol and SportX) are fully owned by the SX Treasury, while others may be minority interests.

The natural flywheel effect of the SX treasury: investments increase community size, which in turn drive SX value and increase the treasury’s capacity to make investments

Application Layer

SX Network will serve as the home to a number of applications upon launch. The SX smart contract protocol and the associated front-end web application — SportX — will be deployed on SX Network on day one. Additionally, there are a number of prediction market-related applications that will be launching on SX Network. SX Network is permissionless and therefore any EVM-compatible applications such as AMMs, yield farms, and lending protocols can and will deploy on SX Network.

Next Steps

The next three months will be extremely busy as we ramp up for the official mainnet launch of the SX Network. Here is the preliminary roadmap:

  • July: Deploying SX Network on testnet for live security and performance testing. We will begin to announce some of the early partners associated with SX Network.
  • August: Deploy SX Network live on a closed network for final security and performance testing. We will also begin announcing the different “founder applications” that will be deploying on SX Network upon launch.
  • September: Planned launch of SX Network v0, which will include smart contracts, a decentralized network of validators, and asset bridging through the Polygon and Ethereum blockchains.

Join the Community

We are very excited for SX Network to come to life so that different prediction markets and other related DeFi projects can benefit from it. For those who are interested, we’re happy to start the conversation if you reach out to us on Discord or email us at




SX Network scales Polygon for betting, DeFi, and NFT applications.

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