Polygon Poised for Major Update, Transitioning from MATIC to the Highly Efficient POL

Sandeep Nailwal, the founder of Polygon, has hinted that the much-awaited upgrade for the Layer-two blockchain is set to take place this year. As part of this upgrade, Polygon plans to make several changes, including switching the ticker of its native token from MATIC to POL.

In a recent video, Nailwal shared insights into the upcoming POL token, shedding light on its unique features. According to him, POL stands out as a multichain token, a quality he believes adds much value to the blockchain ecosystem. One significant detail he mentioned was that POL has an inherent tokenomics design ensuring a 1% inflation rate per year.

Nailwal went ahead to explain that the intentional introduction of inflation in POL serves as an incentive for validators. The idea is to encourage seamless validation and network security. He also pointed out that POL allocates 1% to a treasury reserved for ecosystem growth.

Acknowledging the competitive landscape in the blockchain industry, Nailwal highlighted that many protocols debut with new tokens and sizable ecosystem treasuries. However, he expressed confidence that these innovations will enhance Polygon’s competitiveness within the blockchain space.

When it comes to functionality, the Polygon founder highlighted POL’s re-staking mechanism, classifying it as a third-generation hyper-productive token. He clarified that POL’s hyper-productivity lies in its ability to facilitate participation in running multiple chains and performing various functions, including providing data availability services.

Nailwal emphasized that POL token holders can offer proving services to multiple chains, addressing limitations witnessed in blockchains like Bitcoin and Ethereum.

When it comes to rewards, Nailwal pointed out that POL opens up multiple revenue channels for users. It not only allows holders to earn a base yield but also provides opportunities to earn rewards from transaction fees across the chain by offering a number of services.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.