Validators can gain from the 2% emission policy, as they consistently earn rewards for maintaining the security of the proof-of-stake (PoS) network.
Ethereum layer-2 scaling solution Polygon has recently transitioned its native token from MATIC to POL as part of a broader rebranding and technical upgrade in the Polygon 2.0 roadmap. On the downside, the latest action failed to meet bullish expectations, as the token traded at $0.38 at the time of writing.
POL is currently the latest ticker for Polygon’s native token. Users can swap their MATIC for POL at a 1:1 ratio. Crypto exchanges and price-tracking websites must also update the token’s ticker on their platforms accordingly.
Polygon Unveils POL
Polygon’s POL has been in development since July 2023. Polygon Labs, the team behind the layer 2 blockchain, proposed replacing MATIC with POL, stressing that both tokens cannot coexist. According to the team, POL will be available to users across all platforms linked to Polygon.
Following the proposal’s approval, POL will reorganize the asset’s tokenomics and enhance its flexibility. Despite maintaining a total supply of 10 billion tokens, Polygon Labs revealed that POL will feature a 2% annual emission rate over a decade. This approach allows the development team to fund the community treasury, which can be utilized to support a grant program for the community.
Additionally, validators will also gain from the token emissions, as they will receive ongoing token rewards for maintaining the security of the proof-of-stake (PoS) network.
According to the development team, MATIC holders on the Polygon mainnet don’t need to do anything. Still, those with digital assets on Ethereum, Polygon zkEVM, or centralized exchanges must use a migration contract to participate in the transition. Fortunately, Polygon Labs has confirmed no deadline for completing the migration.
Price Drops Almost 10%
Following the upgrade, Polygon’s native token has struggled to follow the positive trend, experiencing a 9.13% drop in the last 24 hours. At press time, the crypto exchanged hands with $0.3829.