Polygon founder and researchers have released the whitepaper for the next generation protocol token, POL, which is an upgrade to the native asset technology of the Polygon network. POL is a hyper-productive token that, like productive tokens, allows holders to become validators and receive rewards. However, unlike productive tokens, validators can verify any number of chains, and each chain can provide roles and corresponding rewards for verification. To ensure that the Polygon ecosystem can provide sufficient resources for activities such as protocol development, research, and incentive measures, Polygon also proposes the introduction of continuous POL release funding for community finance, which is a self-sustaining ecosystem fund that can support the above activities. In addition, Polygon stated that POL is a proposed technical upgrade to MATIC, and if the community reaches a consensus decision to adopt it, MATIC holders will be able to upgrade their tokens to POL at a ratio of 1:1.
The utility of POL revolves around validators, with the goal of coordinating and incentivizing their work. Validators need to stake POL to join the validator set, and validators can receive at least three types of rewards: 1) Protocol rewards: staking the protocol will continue to distribute a predetermined amount of POL, and allocate it as a basic protocol reward to all active validators, which will replace the MATIC protocol rewards currently received by Polygon validators; 2) Transaction fees: validators can receive transaction fees from any chain they validate; 3) Additional rewards: these rewards can be any token, including but not limited to POL, stablecoins, etc.
POL will bring multiple advantages to the Polygon ecosystem: 1) Ecosystem security: a highly decentralized PoS validator pool can provide security, flexibility, and trusted neutrality for each Polygon chain; 2) Infinite scalability: POL supports index-level growth of the Polygon ecosystem; 3) Ecosystem support: POL can provide sustainable protocol mechanisms for ecosystem activities; 4) Improved user and developer experience; 5) Community ownership: Polygon should be managed by the community, and POL holders can have management rights.
- Forbes investigates Craig Wright: Whether he is Satoshi Nakamoto is no longer as important
- Will this Dapp be the future of banking when NFTs become Swiss bank accounts?
- What are the key mistakes in understanding Arweave, and how can they be avoided?
Polygon’s native token, MATIC, will be upgraded to POL on the mainnet. After reviewing the whitepaper, here are some key takeaways: 1) POL will have an initial issuance of 10 billion, with a 1:1 swap ratio to MATIC, making migration easy. 2) POL will be used on Polygon 2.0’s two chains and other Supernet Chains, including zkRollup, zkEVM, and more, greatly expanding its use cases. There will be no airdrop. 3) POL can be used in various scenarios, such as validator staking and rewards, fees, governance, and more, which extends the potential earning opportunities for token holders. Overall, with the same supply, POL has unlimited application space and diverse income possibilities. However, the yearly increase in staking and reward revenue will be 2%, which is reasonable. The key is to see which will be faster: the implementation speed of Superchain’s super vision or the yearly increase in supply.