Polygon (MATIC) Major Upgrade Countdown in 24 Hours: Details

Ethereum scaling solution Polygon (MATIC) is set to undergo a highly anticipated major upgrade, marking a significant milestone for the blockchain network. This upgrade, set to take place on Sept. 4, 2024, will transition Polygon's native token from MATIC to $POL, unveiling a new era for the ecosystem.

On Sept. 4, the long-awaited upgrade from MATIC to $POL continues. In the initial phase, $POL replaces MATIC as the native gas and staking token for the Polygon PoS network. In subsequent phases, the community can decide to expand the utility of $POL to serve a crucial role in 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.

$POL will experience an annual emissions rate of 2%, which can be changed by the community in the future. This is Polygon's self-sustaining fuel, which is divided into two categories: validation rewards and community treasury.

Validator rewards will incentivize validators and ensure network security; 1% of the total $POL supply will be set aside as staking rewards for validators.

The other 1% of the $POL emissions will be allocated to the Community Treasury, which will be governed by the community and utilized for a variety of initiatives, including protocol development, research, ecosystem funding and adoption incentives. This fund is intended to promote the Polygon ecosystem's development and expansion.

The $POL token's 2% yearly emissions rate is intended to serve as a stimulus for long-term network growth and development, and it will continue for as long as necessary, with the community having the authority to change or cease it in response to changing needs.