POL (formerly known as MATIC) is the native cryptocurrency token for the Polygon ecosystem, a prominent blockchain platform designed to enhance the scalability and functionality of Ethereum. In a significant upgrade from MATIC to POL, the token now powers a wide range of functions within Polygon’s infrastructure, which aims to connect multiple blockchains in an aggregated network called the AggLayer. The shift from MATIC to POL represents a move toward establishing Polygon as a more versatile and expansive platform for decentralized applications (dApps) and blockchain projects.
POL acts as both the gas and staking token on the Polygon Proof of Stake (PoS) network, securing transactions and enabling staking for network validators who help maintain the integrity of the Polygon ecosystem. POL's tokenomics were upgraded to include a 2% annual emissions model, which funds validator rewards and community development initiatives. This sustainable model intends to support both network security and the long-term growth of the ecosystem through a community-controlled treasury.
In addition to its foundational role on the Polygon PoS chain, POL is set to play a pivotal role in the future of Polygon’s cross-chain vision. Polygon aims to support a series of interconnected chains that will form the AggLayer, a Web3 infrastructure layer enabling seamless interoperability between diverse blockchains. Through this, POL becomes a “hyperproductive” token, meaning it can be staked to secure not just one, but multiple chains within the Polygon ecosystem, potentially creating a cohesive and scalable multi-chain network.
The transition to POL is part of a broader push by Polygon to lead in the aggregated blockchain space, where it provides critical infrastructure to support the Ethereum network’s scalability challenges.