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Polygon Ecosystem Token

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Discover Polygon Ecosystem Token's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Polygon Ecosystem Token?

The Polygon Ecosystem Token (POL) is the new native token of the Polygon ecosystem, designed to replace the MATIC token over a four-year period. It serves as a utility token, facilitating various operations and services within the Polygon network, including staking, governance, and access to exclusive services. POL is meant to improve ecosystem security, scalability, and support, with a focus on future-proofing the network for mainstream adoption.

How is Polygon Ecosystem Token used?

The Polygon Ecosystem Token (POL) is used for various activities within the Polygon ecosystem. Key uses include:

  • Governance Voting: POL holders have a say in the future development and decisions of the ecosystem through governance voting.
  • Staking: Token holders can stake their POL to secure the network and earn rewards.
  • Transaction Fees: POL is used to pay for transactions within the Polygon blockchain ecosystem.
  • Restaking: Validators can restake their POL tokens to secure other chains in the Polygon supernet and earn additional rewards.
  • Tax Currency: POL operates as the tax currency of the Polygon network.

These utilities make POL a crucial component of the Polygon ecosystem, supporting its growth and scalability.

How do I store Polygon Ecosystem Token?

To store Polygon Ecosystem Token (POL) tokens securely, it is recommended to use a cold wallet, which is a wallet that is totally offline. There are two types of cold wallets:

  1. Paper Wallet: This is a simple and secure method where you generate a public and private key offline using a program. You then print the keys on a piece of paper, which you store in a secure place. The keys are printed in the form of QR codes that you can scan for future transactions.

  2. Hardware Cold Wallet: This is a physical device where you can store your cryptocurrency. Your crypto addresses and keys are kept in a USB drive device, and only the person who possesses the USB drive can access the assets. Hardware wallets are preferred by most users, especially for storing large numbers of coins or tokens.

How to buy Polygon Ecosystem Token?

To buy Polygon Ecosystem Token (POL) tokens, follow these steps:

  1. Create an account:

    • Sign up on a cryptocurrency exchange that supports POL, such as Kraken, KuCoin, or Gate.io.
    • Ensure you have a strong password and enable two-factor authentication for added security.
  2. Fund your account:

    • Deposit funds into your account using a payment method accepted by the exchange, such as a credit/debit card or bank transfer.
    • Alternatively, you can transfer existing cryptocurrencies from another wallet or trading platform.
  3. Select your trading pair:

  • Choose the POL trading pair you want to use, such as POL/USDT or POL/BTC.
  • Ensure you have the necessary funds in your account to make the purchase.
  1. Place an order:

    • Use the exchange's spot market to place a market order or limit order to buy POL tokens at your desired price.
    • Once your order is executed, the POL tokens will be added to your trading account.
  2. Store your tokens securely:

    • Consider transferring your POL tokens to a cold wallet, such as a hardware wallet or paper wallet, for long-term storage and security.

Remember to research and understand the fees, risks, and market dynamics involved in buying and holding POL tokens.

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History of Polygon Ecosystem Token

The Polygon Ecosystem Token (POL) was introduced as part of the Polygon 2.0 upgrade, which aims to transform the Polygon ecosystem into a full-suite scaling solution for the Ethereum blockchain. The POL token is designed to replace the MATIC token, enhancing its utility and functionality within the ecosystem.

Founding and Development

Polygon, formerly known as Matic Network, was founded in 2017 by four Mumbai-based software engineers: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. Initially, the Matic Network focused on providing a singular Layer 2 scaling solution using Plasma chains. However, in February 2021, the project underwent a significant rebranding to become Polygon Technology, expanding its vision to create a multi-chain blockchain system compatible with Ethereum. This rebranding aimed to attract a broader developer community and provide more tools and resources for building decentralized applications (dApps) with improved scalability and lower transaction costs.

Launch and Upgrade

On October 25, 2023, Polygon Labs launched the Ethereum contract for the new POL token, which is intended to replace the current MATIC token. The POL token is designed to power a vast ecosystem of zero-knowledge-based Layer 2 chains, implementing a restaking protocol that allows token holders to stake it on multiple chains, performing multiple functions in the process.

Key Features and Benefits

The POL token is designed to improve ecosystem security and scalability by allowing validators to secure multiple chains, offering support as the industry grows. It also introduces additional utilities such as restaking, where validators can restake their POL tokens to secure other chains in the Polygon supernet and earn additional rewards. The token is future-proof, with a technical design capable of scaling alongside the ecosystem as it evolves. The initial supply of POL is 10 billion tokens, dedicated for the migration of MATIC to POL, and it will be emitted as validator rewards at a predefined rate that cannot be increased beyond 1%.

Migration and Governance

The upgrade from MATIC to POL requires a simple technical action – sending MATIC to the upgrade smart contract, which will automatically return the equivalent amount of POL. Token holders are given ample time to upgrade, with a proposed timeline of 4 years or more. The governance process for the POL token will be established and announced as part of the Polygon 2.0 effort, ensuring that the Community Treasury is governed by the Polygon community.

Current Status

The POL token is now live on the Ethereum mainnet, marking a significant step towards a more extensive set of developments as part of the Polygon 2.0 upgrade. The token is set to power the elaborate ecosystem being designed by the Polygon development team and its community, eventually replacing MATIC.

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How Polygon Ecosystem Token works

The Polygon Ecosystem Token (POL) is a multi-chain scaling solution designed to improve the speed and reduce the cost of executing transactions on Ethereum. It is an upgrade and renaming of the MATIC token, aiming to enhance tokenomics and governance rights within the Polygon ecosystem. Here are the key aspects of how POL works:

  1. Security and Scalability: POL uses sidechains to help with off-chain computation while maintaining security. It employs a decentralized network of proof-of-stake (PoS) validators, enhancing the security, resilience, and neutrality across all Polygon chains. This setup allows for infinite scalability, enabling the validation pool to accommodate thousands of Polygon chains without compromising on security.

  2. Tokenomics and Governance: POL is designed to create a community-driven governance framework, allowing for decentralized control over the Polygon ecosystem. It incentivizes validators through various streams, enhancing their alignment with the ecosystem's success and encouraging active participation. The continuous emission of POL will fund a Community Treasury, ensuring a self-sustainable ecosystem ready for mass adoption and ongoing development.

  3. Staking and Validation: By staking POL, participants can actively contribute to the ecosystem as validators. This process rewards validators for their role in maintaining the network, ensuring the security and integrity of the Polygon ecosystem.

  1. Token Migration and Reversal: The transition from MATIC to POL operates on a 1-to-1 conversion basis. Users can upgrade from MATIC to POL by calling a smart contract function, and the migration contract includes a feature known as 'unmigration', allowing users to convert their POL back to MATIC if needed.

  2. Bridging Mechanisms: The bridge will undergo modifications to change the native token of Polygon PoS to POL. This means that bridging POL to Polygon PoS will result in receiving an equal amount of native tokens (POL) on Polygon PoS, and bridging POL to Ethereum will always disburse POL tokens.

  3. Trading and Circulation: POL can be bought, sold, and traded on exchanges. As of March 22, 2024, there were 115.2 million POL in circulation out of a total supply of just over 10 billion.

In summary, POL is a crucial component of the Polygon ecosystem, designed to enhance security, scalability, and governance while providing a robust framework for the growth and development of the ecosystem.

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Polygon Ecosystem Token's strengths

The Polygon Ecosystem Token (POL) has several strengths that make it a significant upgrade to the MATIC token:

  1. Future-Proof Design: POL is designed to be future-proof, capable of scaling alongside the evolving Polygon ecosystem. This ensures that it can support the growth of the ecosystem without limitations.

  2. Ecosystem Security: POL enables a highly decentralized pool of Proof-of-Stake (PoS) validators, providing security, resilience, and credible neutrality to every Polygon chain. Validators are incentivized to secure multiple chains, enhancing overall ecosystem security.

  3. Infinite Scalability: POL is designed to support exponential growth of the Polygon ecosystem, making it suitable for mainstream adoption.

  1. Ecosystem Support: POL offers a sustainable, in-protocol mechanism for ongoing ecosystem support, which is crucial for the early phases of the industry.

  2. No Friction: Unlike many blockchain protocols, POL does not introduce friction by requiring users and developers to hold, stake, or consume native tokens to use the network. This enhances user and developer experience.

  3. Community Ownership: POL is designed to hold governance rights, enabling community governance and decentralization, which is a core value of the Polygon ecosystem.

  1. Hyperproductive Token: POL is described as a 'hyperproductive' token, reflecting its extended benefits to holders, including restaking and additional rewards.

These strengths position POL as a robust and versatile token, well-suited to power the expanding Polygon ecosystem.

Polygon Ecosystem Token's risks

Polygon Ecosystem Token (POL) carries a high risk rating based on InvestorsObserver analysis. This rating is determined by a proprietary scoring system that assesses how much money it takes to shift the token's price over a 24-hour period, along with recent changes in volume and market capitalization. The gauge ranges from 0 to 100, with lower scores indicating higher risk and higher values representing lower risk.

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Polygon Ecosystem Token's ecosystem

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Polygon Ecosystem Token’s team

  • Jaynti Kanani: Co-founder of Polygon Labs and Matic Network, which later rebranded to Polygon.
  • Sandeep Nailwal: Co-founder of Polygon Labs and Matic Network, involved in the evolution of the ecosystem and the transition from MATIC to POL.
  • Mihailo Bjelic: Co-founder of Polygon Labs, added to the team after the rebranding from Matic Network to Polygon.
  • Anurag Arjun: Co-founder of Matic Network, which later rebranded to Polygon.
  • David Z: Co-founder of Polygon Labs.
  • Jordi Baylina: Co-founder of Polygon Labs.
  • Antoni Martin: Co-founder of Polygon Labs.
  • Brendan Farmer: Co-founder of Polygon Labs.
  • Daniel Lubarov: Co-founder of Polygon Labs.

Twitter profiles:

  • Polygon Labs: @0xPolygonLabs.

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