Polygon (POL) Token to Replace MATIC in Major Ecosystem Upgrade

The
Polygon
ecosystem
is
set
for
a
significant
transformation
with
a
proposal
to
transition
its
native
token
from
MATIC
to
POL.
This
change
aims
to
enhance
the
utility
and
functionality
within
the
network,
according
to

blog.bitfinex.com.

Polygon
Ecosystem
Token
(POL)

Blockchain
records
indicate
that
the
Polygon
Ecosystem
Token,
commonly
referred
to
as
POL,
was
established
on
October
25,
2023.
The
Polygon
team’s
recent
announcement
highlighted
POL’s
role
in
energizing
an
extensive
network
of
Layer
2
chains
based
on
zero-knowledge
technology.
A
notable
feature
of
POL
is
its
re-staking
protocol,
which
offers
token
holders
the
flexibility
to
stake
across
multiple
chains,
enabling
diverse
functionalities.

The
introduction
of
POL
marks
a
significant
step
in
the
progression
of
the
Polygon
2.0
roadmap.
This
includes
developing
a
new
staking
layer
within
the
Polygon
ecosystem,
transitioning
the
existing
PoS
network
to
a
zkEVM
Layer-2
structure,
and
establishing
a
unified
liquidity
protocol
that
spans
all
Polygon
networks.

Transition
and
Supply

POL
is
not
yet
operational
within
the
Polygon
network
but
is
set
to
migrate
on
September
4th,
2024.
The
current
staking
processes
on
Polygon
PoS
and
Polygon
zkEVM
are
still
conducted
with
MATIC,
which
is
also
used
to
pay
gas
fees
on
the
PoS
network.
Once
the
migration
occurs,
users
and
exchanges
will
need
to
switch
their
MATIC
to
POL
tokens.

The
initial
supply
of
POL
tokens
is
set
at
10
billion,
maintaining
a
1:1
ratio
with
the
existing
supply
of
MATIC.
This
symbolizes
a
direct
upgrade
rather
than
introducing
an
entirely
new
token.

POL’s
Role
and
Functionality

POL
aims
to
bolster
ecosystem
security
by
creating
a
large,
decentralized
pool
of
validators
to
run
and
secure
any
Polygon
chain,
rewarding
validators
for
their
contributions
and
penalizing
any
malicious
activities.
The
token
supports
the
expansion
of
the
validator
pool,
enabling
the
network
to
manage
thousands
of
Polygon
chains,
a
step
towards
what
is
termed
as
“hyperblockchainization.”

From
a
utility
perspective,
validators
will
be
required
to
stake
POL
to
join
the
validator
pool,
increasing
the
ecosystem’s
security
through
mechanisms
like
preventing
Sybil
attacks
and
enabling
slashing
for
malicious
validators.
To
incentivize
validators,
POL
will
be
distributed
as
protocol
rewards,
proportional
to
the
amount
staked.
Additionally,
POL
will
be
a
key
component
in
governance,
allowing
holders
to
participate
in
the
governance
frameworks
of
Polygon.

Future
Prospects

The
upgrade
to
POL
is
expected
to
make
Polygon
a
unique
and
advanced
blockchain
platform,
offering
high
scalability,
enhanced
security,
innovative
economic
models,
and
a
frictionless
experience,
all
governed
by
a
community-driven
approach.
These
attributes
are
set
to
position
Polygon
at
the
forefront
of
blockchain
technology,
especially
for
large-scale
and
diverse
applications.

The
transition
from
MATIC
to
POL
is
planned
as
a
seamless
upgrade,
requiring
token
holders
to
exchange
MATIC
for
POL
through
a
straightforward
technical
process,
with
ample
time
provided
for
the
migration.

Regarding
supply
and
emission,
POL
features
a
predefined
emission
rate,
serving
two
primary
purposes:
validator
rewards
and
ecosystem
support.
The
proposed
yearly
emission
rate
of
1%
of
the
POL
supply
for
each
purpose
ensures
a
balance
between
providing
adequate
support
to
the
ecosystem
and
maintaining
token
scarcity,
a
vital
aspect
for
network
security
and
market
attractiveness.

Conclusion

The
POL
upgrade
will
make
Polygon
a
unique
and
advanced
blockchain
platform,
offering
high
scalability,
enhanced
security,
innovative
economic
models,
and
a
frictionless
experience,
all
governed
by
a
community-driven
approach.
These
attributes
are
set
to
position
Polygon
at
the
forefront
of
blockchain
technology,
especially
for
large-scale
and
diverse
applications.

The
multifaceted
utility
of
POL
revolves
around
its
role
in
validator
incentivization.
Validators
are
required
to
stake
POL
to
join
the
validator
set,
contributing
to
the
network’s
security
through
mechanisms
such
as
Sybil
attack
prevention,
alignment
with
ecosystem
success,
and
slashing
for
misconduct.
In
return,
validators
can
earn
rewards
through
protocol
emissions,
transaction
fees,
and
additional
incentives
offered
by
individual
Polygon
chains.

To
future-proof
the
ecosystem
and
support
its
growth
until
Web3
reaches
mass
adoption,
a
continuous
emission
of
POL
is
proposed
to
fund
a
Community
Treasury.
This
fund
will
be
vital
for
protocol
development,
research,
ecosystem
grants,
and
adoption
incentives,
with
governance
vested
in
the
Polygon
community.

Image
source:
Shutterstock