POL Token Launch Underway, Promises New Era for Polygon Despite Market Slip

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

Polygon has officially begun its highly anticipated transition from MATIC to the new Polygon Ecosystem Token (POL) as part of its “Polygon 2.0” roadmap, a Sept. 4 statement shared with CryptoSlate reveals.

Holders of MATIC tokens on the Polygon Proof of Stake (PoS) Chain, including all staked tokens, will be automatically upgraded to POL. Those holding MATIC on Ethereum mainnet, Polygon zkEVM, and centralized exchanges, meanwhile, can upgrade to the new token at any time.

Following the upgrade, POL will serve as the native gas and staking token for the Polygon PoS sidechain. According to Polygon, POL is a “hyperproductive token” designed to offer valuable services across all chains within the Polygon network, including the AggLayer.

However, despite the anticipation surrounding the token upgrade, the value of POL has dropped by around 10%—a decline that mirrors a broader market slip that has also 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, according to the statement.

New POL emissions are governed by a smart contract, which maintains the emissions rate within predefined limits, Polygon stated. This schedule can be adjusted through community governance and ensures predictability and stability for the community.

The 2% annual emissions are split equally 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 ensures ongoing rewards for validators, making it attractive to new participants and bolstering network security through a decentralized validator pool.

The Community Treasury, meanwhile, will be critical for ecosystem sustainability, as it will be funded by the remaining 1% of emissions. The treasury will be governed by the Polygon community and used to support grants, research, protocol upgrades and other initiatives that drive Polygon's development, the statement concludes.

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