As a seasoned analyst with years of experience in the blockchain industry, I find myself intrigued by Polygon’s upcoming transition from MATIC to POL. This move signifies a strategic step towards evolution for the network and presents an exciting opportunity for growth.
The Ethereum scaling solution known as Polygon (MATIC) is preparing for a significant upgrade, which many have been eagerly anticipating. This upgrade, scheduled for September 4, 2024, will see a transition of Polygon’s native token from MATIC to POL, heralding a new chapter for the network’s ecosystem.
As an analyst, I am excited to share that on September 4th, the anticipated transition from MATIC to POL is underway. Initially, POL will assume the role previously held by MATIC, serving as the native gas and staking token for the Polygon Proof-of-Stake network. In subsequent stages, the community has the opportunity to broaden POL’s functionality, positioning it as a key component within the AggLayer.
POL takes a novel approach to sustainable growth, employing a 2% annual emissions model specifically designed to fund the community awards program with one billion POL over 10 years.
By guaranteeing funding for growth and innovation, this annual emissions model will position Polygon as a leading network for diverse application and use case development.
POL annual emissions rate explained
The upgrade from MATIC to POL is part of the evolution of Polygon into an aggregated blockchain network and introduces an emissions rate for POL.
Polygon presents a distinctive strategy for long-term growth in sustainability, employing a yearly 2% emissions rate. This model is tailored to finance the community grants program with a total of 1 Billion POL over a decade.
— Polygon | Aggregated (@0xPolygon) September 3, 2024
Each year, Polygon’s emissions rate stands at 2%. However, this figure may be adjusted by the community as needed in the future. This self-sustaining energy source of Polygon is categorized into two main areas: Validation Rewards and Community Treasury.
Rewards for validators will motivate them and strengthen the network’s security; a tenth of the entire Polys supply is reserved to offer staking incentives for these validators.
Approximately 1% of the total POL emissions will be assigned to the Community Treasury, a collective governance system designed to support a range of projects such as protocol advancements, research, funding for the ecosystem, and incentives to foster adoption. This fund aims to stimulate growth and expansion within the Polygon community’s infrastructure.
The yearly emission rate of 2% for the POL token is designed to encourage sustained expansion and progress within the network over a prolonged period. This continuous emission rate can be adjusted or stopped altogether by the community as they deem necessary, depending on evolving requirements.
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2024-09-03 18:59