Polygon Rolls Out Ethereum Token to Replace MATIC
The Polygon Labs team launched a smart contract for the new Polygon Ecosystem Token (POL) on the Ethereum mainnet on October 25.
This coin was proposed as part of the Polygon 2.0 update in July, with the intention of improving network scalability while maintaining security.
In September, suggestions were made to replace the current MATIC token with POL, which operates on a Proof-of-Stake consensus mechanism.
The development team stated that POL will enable the creation of a vast ecosystem of layer-2 solutions using zero-knowledge proofs.
The launch of POL also opens the way for other aspects of the Polygon 2.0 roadmap, including a staking layer, zkEVM-2 upgrade, and a universal liquidity protocol.
It is important to note that POL is currently not being used in any protocol operations, so network users do not need to exchange their MATIC. Once fully launched, MATIC can be converted to POL at a 1:1 ratio.
The initial supply of POL will be 10 billion, with an annual increase of 2%. It is worth noting that the proposed architecture for Polygon 2.0 was revealed by Polygon Labs at the end of June.
