The Polygon (MATIC) blockchain network is preparing for a major update on September 4, 2024. With this update, Polygon’s native token, MATIC, will be replaced with POL, marking the beginning of a new era for the ecosystem.
In the first phase, POL will replace MATIC on the Polygon PoS network and will be used as the new native gas and staking token. However, this transition is just the beginning. In future phases, POL’s functionality can be expanded in directions determined by the community and take on more critical roles in strategic layers such as AggLayer.
POL is being introduced with an innovative emission model to support the sustainable growth of the Polygon ecosystem. With an annual emission rate of 2%, this model will see one billion POL tokens distributed to fund the community rewards program over the next 10 years. This approach aims to make Polygon a leading platform for diverse use cases and application development.
Details of Emission Rate
The annual emission rate of POL is 2%, which can be flexibly changed according to the future needs of the community. This rate is divided into two main categories: validator rewards and community treasury. Validator rewards are set at 1% of the POL supply to ensure network security and incentivize validators. The other 1% will be transferred to the community treasury and managed by the community, and will be used for various projects such as protocol development, research, ecosystem funding, and adoption incentives.
POL for Long Term Growth and Development
This new emission model aims to support Polygon’s long-term growth and development. POL’s 2% annual emission rate will play a critical role in the sustainable development of the network. However, this rate can be updated or terminated by the community on a case-by-case basis.
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