cryptoslate.com
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.