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Validators for their contributions and penalising any malicious activities. Secondly, POL is integral to achieving infinite scalability within the Polygon ecosystem. It supports the expansion of the validator pool, enabling the network to potentially manage thousands of Polygon chains, a crucial step towards what is termed as “hyperblockchainization.”In terms of ecosystem support, POL is expected to play a vital role in establishing a self-sustaining economic model for Polygon’s ongoing development and growth. This aspect is particularly important as Polygon positions itself as a global network, requiring continuous innovation and expansion.POL is also designed to minimise friction commonly associated with blockchain networks, where users and developers often need to hold, stake, or consume native tokens. This approach aims to enhance the overall user and developer experience. Lastly, POL is envisioned to facilitate community ownership, with governance rights assigned to POL holders, enabling them to participate actively in decision-making processes that shape the Polygon ecosystem.From a utility perspective, POL serves multiple functions. Validators will be required to stake POL to join the validator pool, increasing the ecosystem’s security through mechanisms like preventing Sybil attacks and enabling slashing for malicious validators. To incentivize validators, POL will be distributed as protocol rewards, proportional to the amount staked.Additionally, POL will be a key component in governance, allowing holders to participate in the governance frameworks of Polygon. The initial supply of POL is set to match that of MATIC at 10 billion tokens, ensuring a straightforward migration process. This migration is crucial for POL to succeed
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A hyperproductive token, POL is also geared towards enabling community governance. Holders of POL will have governance rights, allowing them to participate in decision-making processes that shape the future of the Polygon ecosystem. Moreover, POL aims to establish a self-sustaining funding mechanism for ongoing development, research, and ecosystem growth.Seamless User Experience: Designed to minimise friction for both users and developers, POL is structured to facilitate easy interaction with the Polygon network, enhancing the overall experience and accessibility.Emission Policy for Ecosystem Funding: POL will have a predetermined emission rate to support validator rewards and a Community Treasury. This Treasury, governed by the Polygon community, is intended to fund various activities crucial for the ecosystem’s advancement, including protocol development and adoption incentives.Polygon Ecosystem Token (POL) TokenomicsUpgrade and Replacement of MATIC: POL is not a completely new token; rather, it is an upgraded and renamed version of the existing MATIC token. In the Polygon ecosystem, MATIC and POL are not intended to coexist. Instead, POL will replace MATIC as the native token. This transition marks a significant shift in the token’s utility and role within the network, aligning with the broader goals of Polygon’s strategic evolution.Introduction of the Community Treasury: The Community Treasury is a new mechanism being introduced alongside POL. Its purpose is not to supplement the Polygon Foundation’s funds but to provide a self-sustaining support system for the Polygon ecosystem. The Community Treasury is envisioned as an independent entity that will bolster Polygon’s position in the competitive blockchain infrastructure market. This
