POL (prev. MATIC) | Trading Non Stop

What is POL?

Polygon (POL) is the upgraded native cryptocurrency of the Polygon network, a blockchain platform built to improve Ethereum by making transactions faster, cheaper, and secure.

Ethereum Scaling Solution – Runs on a Proof-of-Stake (PoS) network that processes transactions outside of Ethereum’s main blockchain.
Dual Utility – Used to pay transaction fees (gas) and as a staking asset to help secure the network.
Ecosystem Backbone – Supports decentralized apps (dApps), tokenized assets, and enables communication between different blockchains.

Deep Dive

1. Purpose & Value Proposition

Ethereum is popular but faces challenges like high fees and slow transaction speeds. Polygon solves this by using a PoS sidechain that handles transactions off Ethereum’s main network. This lets developers create dApps that have Ethereum’s security but with faster and cheaper transactions. In 2024, Polygon rebranded from MATIC to POL, aligning with Polygon 2.0’s goal of creating a unified “Value Layer” that connects multiple blockchains through a technology called AggLayer.

2. Technology & Architecture

Polygon uses a PoS consensus system combined with AggLayer, a protocol powered by zero-knowledge (ZK) proofs that links multiple blockchains into one network. This setup allows users to move assets and interact across different blockchains smoothly, without splitting liquidity. Recent upgrades, like the Heimdall v2 hard fork, have sped up transaction finality to about 5 seconds and increased the network’s capacity to over 1,000 transactions per second (TPS).

3. Tokenomics & Governance

POL has three main uses:

Gas Fees: Pays for all transactions on the Polygon PoS network.
Staking: Validators lock up POL tokens to help secure the network and earn rewards.
Governance: Token holders can vote on changes and upgrades to the protocol.
POL has a 2% yearly inflation rate to reward validators, and as of August 2025, 97.8% of MATIC holders have switched to POL (Polygon).

Conclusion

Polygon (POL) is a key player in scaling Ethereum, offering a balance of speed, low cost, and cross-chain compatibility. Its transition from MATIC marks a strategic move toward connecting different blockchain ecosystems. With AggLayer enhancing cross-chain interactions, POL could become the go-to token for managing multiple blockchains.