- According to Polygon’s founder, the anticipated upgrade of the Layer-two blockchain will happen this year.
- After upgrading, Polygon will switch from MATIC to POL as its native token.
- Polygon founder said POL will be a multichain, hyper-productive token.
According to Polygon Founder Sandeep Nailwal, the anticipated upgrade of the Layer-two blockchain will happen this year. The upgrade would see Polygon change the ticker of its native token from MATIC to POL, among other features.
In a recently uploaded video, Nailwal explained the characteristics of the upcoming POL token. According to him, POL will be a multichain token, a quality he thinks would make it relevant in the blockchain ecosystem. He noted that the inbuilt tokenomics of POL ensure 1% inflation per year.
Nailwal further explained that POL’s inflation was a deliberate introduction to incentivize validators. He believes such incentivization would motivate them to keep validating and securing the network. He noted that POL also has a 1% treasury reserved for growing the ecosystem.
Citing competition in the blockchain industry, Nailwal noted that most protocols arrive with fresh tokens and large ecosystem treasuries. However, he believes the innovation would aid Polygon’s competitiveness in the blockchain industry.
Meanwhile, the Polygon founder noted that POL comes with a re-staking mechanism, making it a third-generation hyper-productive token. He explained POL’s hyper-productivity as the token’s ability to enable participation in running multiple chains and other functions, including providing data availability services.
According to Nailwal, POL token holders can provide proving services to multiple chains in various other use cases. He noted that it overcomes the limitations of blockchains like Bitcoin and Ethereum.
Considering rewards, the founder explained that POL provides multiple revenue channels to users. He noted that it enables holders to earn the base amount of yield and earn rewards from transaction fees across the chain by offering different kinds of services.
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