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Polygon has formally began its long-awaited transition from MATIC to the brand new Polygon Ecosystem Token (POL) as a part of its “Polygon 2.0” roadmap, in line with a Sept. 4 assertion shared with CryptoSlate.
Holders of MATIC tokens on the Polygon Proof of Stake (PoS) Chain, together with all staked tokens, will probably be robotically upgraded to POL. In the meantime, these holding MATIC on Ethereum mainnet, Polygon zkEVM, and centralized exchanges can improve to the brand new token anytime.
After the improve, POL will function the native fuel and staking token for the Polygon PoS sidechain. Polygon described POL as a “hyperproductive token” designed to supply invaluable providers throughout all chains inside the Polygon community, together with the AggLayer.
Regardless of the token improve’s anticipation, POL’s worth has dropped by round 10%, mirroring a broader market decline that has affected Bitcoin and different main digital belongings up to now 24 hours.
POL emissions
POL introduces a sustainable development mannequin with a 2% annual emissions price.
Polygon acknowledged that new POL emissions are ruled by a wise contract, which maintains the emissions price inside predefined limits. This schedule may be adjusted by neighborhood governance and ensures predictability and stability for the neighborhood.
In the meantime, the two% annual emissions are equally cut up between validator rewards on Polygon PoS and the Group Treasury. The community added:
“Validators obtain 1% as incentive to safe the community, whereas the opposite 1% goes to the Group Treasury to help Polygon for the long-term.”
This emissions mannequin ensures ongoing rewards for validators, making it interesting to new contributors and strengthening community safety by a decentralized validator pool.
Alternatively, the Group Treasury, sustained by the remaining 1% of emissions, could be very important for ecosystem sustainability. The treasury could be managed by the Polygon neighborhood and used to fund grants, analysis, protocol upgrades, and initiatives that propel Polygon’s improvement.
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