The Polygon network has begun the transition from its native token MATIC to POL, as part of its Polygon 2.0 roadmap. This update brings with it implications such as minor modifications to the tokenomics and functionality of its Cryptocurrency. From now on, Polygon’s native currency will have an annual inflation rate of 2%.
This event which brought the annual inflation rate of 2% This means that 200 million POL tokens will be issued every year.. The new inflationary structure is planned to last for the next ten years. The increase in the native token supply is intended to ensure longer incentives for the network’s validators, who play an essential role in the health and decentralization of Polygon through the staking.
This process makes the Blockchain more secure by making it difficult to engage in malicious behavior, offering more POL as a reward. In this way, more users would be enticed to participate in the community and block their POL within the network as collateral to validate transactions and keep Polygon operational.
1% per year of the staking supply
The new distribution scheme allocates 1% of the POL issued annually as a reward for validators who participate in staking. The other 1% goes to the community treasury, a fund controlled by the Polygon community that aims to support the development, expansion, and self-governance of the ecosystem.
Polygon will mutate its native token MATIC, which will be renamed POL. Source: Polygon.
POL is the new token used on the Polygon PoS (Proof of Stake) network, replacing MATIC. This update means that functions previously performed by MATIC, such as payment of transaction fees and staking, will now be performed identically by POL.
Ultimately, the transition, the company said, was done automatically on the Polygon network on September 4; those users who own MATIC on Ethereum will have to make the transition manually through the portal offered by Polygon.
How did the Polygon community respond to the migration from MATIC to POL?
As it reported days ago CriptoNoticias, the Polygon community seems to have adopted a distant and thoughtful or apathetic stance regarding this event.
Taking on-chain metrics from the site Grow the Pielow levels of active addresses, transaction volume, and market cap of Polygon were detected prior to the upgrade
This stagnation continued throughout 2024 and continues today, and Polygon’s update has yet to find a positive response from its community.
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