Polygon 2.0 token POL contract has been deployed on Ethereum.

The core module of Polygon 2.0 – the POL token was deployed on the Ethereum mainnet on the 25th. The team expects the actual upgrade of MATIC to take place shortly.

POL Contract Deployed on Ethereum by Polygon

According to an official announcement by Polygon, the contract for the new token POL as part of Polygon's token upgrade plan has been successfully deployed on the Ethereum mainnet. The contract address for the token is 0x455e53CBB86018Ac2B8092FdCd39d8444aFFC3F6.

Holders of MATIC tokens will be able to swap for POL tokens at a 1:1 ratio in the future. However, users are not required to take any action at this stage and are advised to await further official announcements.

Reasons for Token Upgrade

In response to Polygon's recent upgrade plan, Polygon 2.0, which aims to integrate multiple blockchain networks into a platform for all blockchains, allowing users to interact with the entire network as if it were a single blockchain, achieving infinite scalability and unified liquidity.

The token upgrade is said to pave the way for Polygon 2.0. By replacing the existing MATIC token with the POL token, it enables POL to serve as the single token for all Polygon-based networks, aligning with the grand vision of Polygon 2.0 and preparing for the transition of Polygon POS to Polygon zkEVM Validium.

In the future, users will be able to utilize POL tokens for easy staking in the unified staking layer of Polygon, participating in the operations of various networks, including Polygon PoS, Polygon zkEVM, and other subnets. POL can also be used as the native token for network gas fees. For more details, refer to PIP-18.

Additional Points on Token Upgrade

According to the POL whitepaper, the initial total supply of POL tokens is 10 billion, corresponding to the original 10 billion MATIC tokens. However, the key difference is that POL tokens will have a 2% annual inflation rate over the next ten years, allocated as follows:

• Ecosystem Development: 1% annual inflation to support ecosystem development operations.
• Network Security: 1% annual inflation to reward network nodes for maintaining consensus.

This inflation rate will be subject to governance decisions after ten years. However, it has already sparked discontent among MATIC token holders, who argue that this design dilutes the original value of MATIC and is not in line with the existing MATIC token economics.