Polygon has formally printed the white paper on the enterprise mannequin of the brand new Polygon 2.0 native POL token. POL is just not a brand new token, however an improve of the unique MATIC token. The brand new POL token will work in all Polygon ecological networks, together with Polygon PoS, Polygon zkEVM, Polygon Supernets, and extra. At the moment, MATIC token holders will alternate it for POL in a ratio of 1:1.
MATIC’s value rose in opposition to the sound, with an 18% enhance over 24 hours, and the present quote is $0.86.
Nevertheless, within the white paper, the preliminary whole quantity of POL is 10 billion, and will probably be issued at an annual price of two% over the subsequent 10 years, which signifies that the overall quantity of POL tokens has exceeded the quantity whole of 10 billion MATIC tokens. This has precipitated displeasure amongst MATIC holders, who really feel it has diluted MATIC’s authentic worth.
In response to information from CoinGecko, at current, the overall circulation of MATIC is 9.319 billion cash and the present market worth is US$8 billion, rating eleventh amongst crypto property.
How is the POL token completely different from the unique MATIC? What position does POL play in Polygon2.0? What are the Polygon2.0 updates?
The POL token is a vital a part of the Polygon2.0 roadmap, and it is also essentially the most regarding factor for customers locally, as a result of as soon as POL’s MATIC improve plan is formally launched carried out, this may imply that the narrative logic (comparable to utility and worth) of the MATIC tokens shall be modified. will change. However POL’s hidden publication in its white paper has sparked controversy.
Within the whitepaper, the POL provisioning mannequin will encompass two components: preliminary provisioning and steady issuance. Amongst them, the overall preliminary issuance is 10 billion cash, all of that are used for upgrading and exchanging MATIC tokens. As well as, POL will even enhance emissions at a continuing price of two% annually, and the speed of enhance will stay unchanged for at the very least 10 years. As for the adjustment of the speed of enhance after 10 years, will probably be decided in accordance with the actual state of affairs. Extra issuance could also be suspended.
The supplemental present has two predominant functions, together with validator rewards and ecosystem fund improvement. The primary distributes 1% of POL’s annual price of enhance supply as a Base Protocol Reward to Verifiers to encourage Verifiers to hitch. The latter can be a 1% ecosystem fund that shall be issued yearly to proceed supporting the event and progress of the Polygon ecosystem. Throughout the first 10 years, the emission price can’t be modified. After 10 years, the neighborhood can resolve to scale back the worth of the emission price in any method by the governance framework, however this won’t exceed 1%.
This implies that previously 10 years, POL will subject an extra 200 million tokens yearly, plus the preliminary provide of 10 billion tokens, and the overall quantity of POL tokens has exceeded the higher restrict of MATIC.
This makes MATIC holders fairly sad, pondering that the extra issuance of POL will dilute the unique worth of MATIC, why not select to immediately make MATIC tokens extra priceless, ineffective.
Some customers stated that it must be that Polygon has no cash formally and desires to ship cash to itself by way of the brand new POL token. Since 93% of MATIC are at present circulating within the secondary market, the Polygon staff doesn’t have sufficient tokens to drive person progress and utility adoption of Polygon ZkEVM, and now they’ll solely subject new components.
The official clarification for that is that the precept of issuing and setting the speed of POL is because of the truth that the Polygon ecosystem and Web3 improvement want time to mature and obtain widespread adoption . Based mostly on the historic adoption cycles of the Web and computing platforms, the maturity section can take roughly 10-15 years. Throughout this era, the ecosystem wants steady financial help.
When the Polygon ecosystem and Internet 3 attain a mature stage, when the transaction charges and different incentives obtained by verifying the varied chains within the Polygon ecosystem can have ample returns, the neighborhood can resolve to scale back or cease fully issuing extra rewards for verifiers. . Equally, as soon as the ecosystem now not wants extra financial help, the neighborhood also can resolve to scale back or cease extra emissions to the neighborhood treasury.
Clearly, the Web3 adoption cycle could also be barely completely different or fully completely different from the historical past of the Web. If it seems that mainstream adoption is taking longer and the ecosystem nonetheless wants help in 10 years, the neighborhood can select to not intervene at the moment or regulate the emission price as wanted.
This appears to coincide with the person’s guess that “the Polygon staff does not have sufficient tokens to drive person progress and utility adoption of Polygon ZkEVM, and now they’ll solely subject new cash “.
Since asserting the Polygon 2.0 plan, Polygon’s technique has developed from a single-block community to a ZK Rollup-driven L2 multi-chain community ecosystem, together with Polygon PoS, Polygon zkEVM, and numerous Polygon Supernets-based subnets. . POL tokens will work throughout its total community ecology.
Within the whitepaper, the official stated that POL is the third technology token after BTC and ETH. Polygon explains this:
Though BTC is the primary technology of native tokens, it’s primarily used to pay fuel charges and rewards for on-chain miners, however for holders it can’t be used as a productive asset (like a token as a verification node), nor have any governance powers.
ETH is a productive asset. Ethereum’s PoS mechanism helps ETH holders to pledge it, take part in community safety safety and thus get incentives, however its provide can’t be predicted. As well as, it’s assigned to the administration basis. The token provide shall be exhausted and help for the ecosystem will stop.
Like ATOM, as a local token of the Cosmos Hub core chain, it’s also a productive asset that may be pledged to take part within the safety of the Cosmos Hub and acquire incentives. However the token is barely helpful throughout the Cosmos Hub core chain; it’s not used to run and safe different chains within the Cosmos multi-chain ecosystem. The financial help it facilitates can not proceed indefinitely, and neighborhood treasury funds will even be depleted.
Polygon hopes to resolve the above points. It may possibly proceed to help its ecological improvement by contributing 1% of the overall provide to the general public treasury annually.
Moreover, Polygon additionally turns into POL as hyperproductive tokens, and POL token holders can have interaction as verifiers to confirm all Polygon2.0 ecological networks; on completely different chains, the position of POL holders can be completely different, comparable to on the zkEVM chain, POL holders can act as certifiers to generate and submit zero-knowledge proofs; On the PoS chain, POL holders can act as verifiers to submit transactions and generate blocks.
The Staking Layer idea launched by Polygon2.0 is the place verifiers pledge POL tokens. Right here, customers pledge POL tokens to enter the verifier pool and might take part in Polygon chain verification to earn verifier rewards of 1% extra POL issued per 12 months.
That is just like Web2’s cloud platform, customers need not fear about which cloud the app information is saved on? As a verifier, you do not should be cautious which channel you select to confirm to maximise reward income.
From this angle, POL would be the core asset of the Polygon ecosystem, just like the connection between AVAX and Avalanche and its subnets. Customers comply with make AVAX validators, who can confirm the Avalanche mainnet and its subnets throughout the ecosystem. However in Polygon, verifiers can confirm a number of chains, and every chain can present verifiers with a number of roles and corresponding rewards, which not solely can be utilized to confirm transactions in every community, but additionally can be utilized to generate zero-knowledge proofs. to undergo Ethereum mainnet, and many others.
What token will the Polygon Eco-Chain use to pay for GAS? The official stated that the Polygon PoS chain will use POL because the cost technique for GAS charges, and different chains can select POL or subject their very own native tokens.
Polygon2.0’s imaginative and prescient is to turn into the worth layer of the community, merely understood because the platform layer of Web3 (comparable to Cosmos, Polkadot), permitting builders to construct their very own block community based mostly on it, offering a extra versatile and highly effective platform for DApp. Its perform is just like Web2’s cloud service platform.
At present, Polygon2.0 is an L2 layer multi-chain community pushed by ZK expertise and introduces a set of modules, together with consensus and synchronization mechanism, fraud proof, and many others., builders can use these modules to construct their very own blockchain community, has infinite scalability and unified liquidity, and also can work together throughout chains. For customers, utilizing the complete community is like utilizing a sequence.
Amongst them, Polygon PoS shall be upgraded to zkEVM Validium to make it suitable with ZK expertise. At the moment, zkEVM, PoS, and Supernets subnets will obtain info and worth interoperability.
Basically, Polygon2.0 shall be a group of ZK-series L2 extension networks.
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