Polygon, a Layer-2 solution developed on the Ethereum blockchain, is preparing for a substantial enhancement by transitioning its MATIC token to the new POL token.
This action is a component of the Polygon 2.0 plan, which is designed to enhance the usefulness and scalability of the ecosystem. Holders of MATIC on the Polygon Proof of Stake (PoS) chain will experience an automated conversion of their tokens to POL.
However, holders on alternative platforms like the Ethereum network or Polygon’s zkEVM Layer-2 network would be required to manually move their tokens. The POL token will have a crucial function in the forthcoming Polygon 2.0 enhancements, acting as the primary token for gas payments and staking on the Polygon Proof-of-Stake (PoS) network.
Additionally, it will be crucial in Polygon’s staking hub, scheduled to be released in 2025. In this hub, POL will carry out important tasks like as generating blocks, generating zero-knowledge proofs, and participating in Data Availability Committees (DACs).
Polygon is modifying its tokenomics by introducing the new POL token, which will have an annual emission rate of 2%. This rate is intended to incentivize validators and refill the community treasury.
This is in line with Polygon’s overarching objective of developing a token that is resistant to obsolescence and can effectively facilitate the expansion and protection of its ecosystem.
