The POL supply will exceed the original limit of 10 billion MATIC, and there will be a 2% annual increase over the next 10 years.
2023-07-13 12:08
According to the POL whitepaper released by Odaily, to ensure rewards for validators and support for the ecosystem, POL will be gradually issued in addition to the initial supply of 10 billion tokens (all converted from MATIC) at a specific rate each year.
Specifically for validator rewards, Polygon proposes setting the annual issuance rate for POL used in this aspect to 1% of the supply. This rate cannot be changed in the first 10 years, but the community can decide on the specific value through a governance framework afterwards. However, the issuance rate will never exceed 1%. For ecosystem support, Polygon also suggests setting the annual issuance rate for POL used in this aspect to 1% of the supply. Similar to validator reward issuance, this value can be reduced through the governance framework after 10 years, but it will never exceed 1%.
Polygon explains that this setup is because the Polygon ecosystem and Web3 as a whole still need time to further mature and achieve mainstream adoption. Based on the adoption cycles of the internet and computing platforms in history, the mature stage may actually take around 10-15 years. During this period, the ecosystem will require continuous economic support.
It is worth mentioning that the previous token economy model for MATIC had a fixed supply cap of 10 billion tokens.
As part of the Polygon 2.0 roadmap, Polygon has proposed a technical upgrade for its native MATIC token. While awaiting community approval, MATIC will be converted to Polygon (POL), which is intended to operate across all Polygon protocols, including PoS, zkEVM, and the super network. The overall goal of the upgrade is to ensure the scalability of the ecosystem without compromising security.
The upgrade plan from MATIC to POL is straightforward. Token holders need to send their MATIC tokens to a specific smart contract, and in return, the contract will issue an equivalent amount of POL tokens. Polygon proposes to provide token holders with a grace period of at least four years to complete the upgrade process.
Specifically for validator rewards, Polygon proposes setting the annual issuance rate for POL used in this aspect to 1% of the supply. This rate cannot be changed in the first 10 years, but the community can decide on the specific value through a governance framework afterwards. However, the issuance rate will never exceed 1%. For ecosystem support, Polygon also suggests setting the annual issuance rate for POL used in this aspect to 1% of the supply. Similar to validator reward issuance, this value can be reduced through the governance framework after 10 years, but it will never exceed 1%.
Polygon explains that this setup is because the Polygon ecosystem and Web3 as a whole still need time to further mature and achieve mainstream adoption. Based on the adoption cycles of the internet and computing platforms in history, the mature stage may actually take around 10-15 years. During this period, the ecosystem will require continuous economic support.
It is worth mentioning that the previous token economy model for MATIC had a fixed supply cap of 10 billion tokens.
As part of the Polygon 2.0 roadmap, Polygon has proposed a technical upgrade for its native MATIC token. While awaiting community approval, MATIC will be converted to Polygon (POL), which is intended to operate across all Polygon protocols, including PoS, zkEVM, and the super network. The overall goal of the upgrade is to ensure the scalability of the ecosystem without compromising security.
The upgrade plan from MATIC to POL is straightforward. Token holders need to send their MATIC tokens to a specific smart contract, and in return, the contract will issue an equivalent amount of POL tokens. Polygon proposes to provide token holders with a grace period of at least four years to complete the upgrade process.
Recommended Articles
