Polygon recently completed a significant upgrade, transitioning its native token from MATIC to POL as of September 2024. This upgrade is a key part of Polygon's broader Polygon 2.0 vision, which aims to enhance the scalability and utility of its network.
The POL token now replaces MATIC as the network's primary gas and staking token. Unlike MATIC, which had a fixed supply, POL introduces an inflationary model with a 2% annual growth rate. This is designed to support long-term network growth, with 1% going to validator rewards and the other 1% allocated to a community treasury for ecosystem development and grants.
A notable feature of POL is its aim to become a "hyperproductive" token. It is designed to earn fees from various activities beyond just gas fees and staking, including securing data availability and decentralizing network components. Polygon's developers plan to unlock more of POL's potential in the coming years, with full functionality expected to roll out by 2025 as part of a more extensive cross-chain ecosystem.
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