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Ethereum scaling solution Polygon (MATIC) is set to undergo a highly anticipated major upgrade, marking a significant milestone for the blockchain network. This upgrade, set to take place on Sept. 4, 2024, will transition Polygon's native token from MATIC to POL, unveiling a new era for the ecosystem.
On Sept. 4, the long-awaited upgrade from MATIC to POL continues. In the initial phase, POL replaces MATIC as the native gas and staking token for the Polygon PoS network. In subsequent phases, the community can decide to expand the utility of POL to serve a crucial role in the AggLayer.
POL takes a novel approach to sustainable growth, employing a 2% annual emissions model specifically designed to fund the community awards program with one billion POL over 10 years.
Tomiwabold OlajideBy guaranteeing funding for growth and innovation, this annual emissions model will position Polygon as a leading network for diverse application and use case development.
POL annual emissions rate explained
The upgrade from MATIC to POL is part of the evolution of Polygon into an aggregated blockchain network and introduces an emissions rate for POL.
POL will experience an annual emissions rate of 2%, which can be changed by the community in the future. This is Polygon's self-sustaining fuel, which is divided into two categories: validation rewards and community treasury.
Validator rewards will incentivize validators and ensure network security; 1% of the total POL supply will be set aside as staking rewards for validators.
The other 1% of the POL emissions will be allocated to the Community Treasury, which will be governed by the community and utilized for a variety of initiatives, including protocol development, research, ecosystem funding and adoption incentives. This fund is intended to promote the Polygon ecosystem's development and expansion.
The POL token's 2% yearly emissions rate is intended to serve as a stimulus for long-term network growth and development, and it will continue for as long as necessary, with the community having the authority to change or cease it in response to changing needs.
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team