POL token launch underway, promises new era for Polygon despite market slip News โธ Polygon โธ Technology
POL token launch underway, promises new era for Polygon despite market slip
Polygon's "hyperproductive" POL token POL would have a 2% annual emissions rate.
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Updated: Sep. 4, 2024 at 1:57 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Polygon has officially started its long-awaited transition from MATIC to the new Polygon Ecosystem Token (POL) as part of its “Polygon 2.0” roadmap, according to a Sept. 4 statement shared with CryptoSlate.
Holders of MATIC tokens on the Polygon Proof of Stake (PoS) Chain, including all staked tokens, will be automatically upgraded to POL. Meanwhile, those holding MATIC on Ethereum mainnet, Polygon zkEVM, and centralized exchanges can upgrade to the new token anytime.
After the upgrade, POL will serve as the native gas and staking token for the Polygon PoS sidechain. Polygon described POL as a “hyperproductive token” designed to offer valuable services across all chains within the Polygon network, including the AggLayer.
Despite the token upgrade’s anticipation, POL’s value has dropped by around 10%, mirroring a broader market decline that has affected Bitcoin and other leading digital assets in the past 24 hours.
POL emissions
POL introduces a sustainable growth model with a 2% annual emissions rate.
Polygon stated that new POL emissions are governed by a smart contract, which maintains the emissions rate within predefined limits. This schedule can be adjusted through community governance and ensures predictability and stability for the community.
Meanwhile, the 2% annual emissions are equally split between validator rewards on Polygon PoS and the Community Treasury. The network added:
“Validators receive 1% as incentive to secure the network, while the other 1% goes to the Community Treasury to support Polygon for the long-term.”
This emissions model guarantees ongoing rewards for validators, making it appealing to new participants and strengthening network security through a decentralized validator pool.
On the other hand, the Community Treasury, sustained by the remaining 1% of emissions, would be vital for ecosystem sustainability. The treasury would be managed by the Polygon community and used to fund grants, research, protocol upgrades, and initiatives that propel Polygon’s development.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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