$POL (Polygon Ecosystem Token) is the native fuel and staking token of the Polygon community (@0x polygon) is among the most well-known Ethereum layer 2 scaling networks that runs proof-of-stake. It pays for transactions, secures the chain via staking, and offers holders a say in how the ecosystem spends their funds. $POL changed Matic In 2024, it was constructed to do what MATIC could not do: shield many chains directly.
If you happen to personal MATIC, you in all probability $POL No matter whether or not you carry your finger or not. Right here we clarify what tokens are, how the change was made, and the way they work in apply right now.
From MATIC to $POL: What has modified?
of polygons The primary token was MATIC. In July 2023, the group proposed changing this with: $POL As a part of the Polygon 2.0 roadmap. The transition began on September 4, 2024 at a 1:1 ratio, so no new tokens have been created and the beginning provide mirrored roughly 10 billion of MATIC.
Within the Polygon PoS chain, the swap was automated. MATIC stability is like this $POLand most customers solely noticed the ticker change of their pockets. Holder outfitted with MATIC Ethereum Alternatively, exchanges required guide migration via the official Polygon portal. In accordance with Polygon, roughly 99% of MATIC $POL A couple of 12 months after launch, all transactions on Polygon PoS $POL It has been used as a local fuel token since September 2024. The improve additionally expanded the scope of staking. $POL Validators will be given permissions similar to block technology and zero-knowledge proof technology.
This was an improve and never a brand new token sale. The objective was to show a single chain’s tokens into tokens that may energy a whole community of chains.
what to do $POL Would you truly do this?
$POL I’ve three jobs to do right now.
fuel: Pay transaction charges on the Polygon PoS community. The community focuses on funds and high-volume apps, as charges sometimes price lower than a penny.
Staking: Locking validators and delegators $POL Safe chains and earn rewards. These rewards come from the issuance of latest tokens and a portion of community charges. Roughly 3.6 billion as of early 2026 $POL Almost a 3rd of the availability was locked in staking contracts.
In April 2026, Polygon gave away its locked capital someplace to go. We’ve launched sPOL, the primary native liquid staking token. stake $POL By means of it, sPOL is returned. It is a acquired token that can be utilized as collateral or liquidity throughout DeFi, however the underlying $POL Proceed to earn rewards. The secret is to make good use of your unplayed bets. Earlier than sPOL it was solely about 4-5% of stakes $POL was far behind Ethereum in liquidity, the place a lot of the ETH staked was in liquid staking.
Governance: $POL Holders assist decide how neighborhood treasury funds are used, similar to grants and improvement funds.
$POL It is also central to Polygon’s long-term plans. AggLayer, Polygon’s system for linking separate chains right into a single community with shared liquidity, has been operating on mainnet since early 2025, connecting a rising variety of chains. Works which are nonetheless present process last changes are $POLFunction in it: the concept of “one stake, many chains” the place validators safe a number of chains with the identical stake. $POL. The infrastructure is operational, however the staking and charge construction that ties it collectively is $POL It’s nonetheless maturing.
how $POLTokenomics method?
$POL We began with 10 billion tokens. By mid-2026, circulating provide reached almost 10.65 billion, with no most provide set.
The token has a 2% annual emissions built-in. In accordance with Polygon’s documentation, this will likely be break up between 1% for validator and staking rewards, and 1% for a neighborhood treasury that funds grants and ecosystem progress. This schedule started after the unique MATIC compensation plan led to 2025, and the charges have been later adjusted via a neighborhood vote generally known as PIP-26. Governance might change emissions sooner or later, however sensible contracts will restrict new emissions. $POL Might be solid.
There isn’t any arduous provide cap. Polygon deliberately selected an inflation mannequin so it funds emissions safety and improvement on a predictable schedule, reasonably than counting on charge revenue that may dry up when exercise slows down. The tradeoff is dilution. new $POL It circulates yearly, no matter whether or not the community is worthwhile or not, and can solely work in the long term if utilization will increase with sufficient price burn to offset new provide.
the place is it $POL Used?
Past fuel and staking $POL It belongs to a variety of actions.
- cost and secure cointogether with cross-border remittances and service provider funds. That is at present considered one of Polygon’s essential pitches, with roughly $3.7 billion of stablecoins issued on the community.
- DeFi covers lending, borrowing, buying and selling, and liquidity, with roughly $1.1 billion locked within the Polygon DeFi protocol as of June 2026.
- Gaming and NFTs are all about low charges and fast affirmation.
- Actual world property and institutional utilization similar to tokenized funds and controlled staking.
The community processed roughly 1.4 billion transactions in 2025. This exhibits that on-chain utilization, not simply transactions, is driving demand for the token.
tooth $POL Inflation or deflation?
That is the place the easy label “inflation” breaks down.
on paper $POL Emissions add 2% to produce per 12 months. Nevertheless, Polygon PoS nonetheless consumes a portion of each transaction charge, which is similar EIP-1559 mechanism that Ethereum makes use of. If the community is congested, these burnt can outweigh new emissions.
In early 2026, that is precisely what occurred. Polygon reported about 1 million burn accidents every day $POL Utilization has skyrocketed to about 3.5% of annual provide, outpacing the two% annual improve in emissions. throughout these stretches $POL Even when the design is inflationary, it’s deflationary in nature.
So every thing is determined by the precise community exercise. Emissions are mounted and predictable. There are not any burns. The extra a community is used, the safer it turns into. $POL You get the availability.
supply of knowledge
- polygon — The official weblog confirms that the migration has reached 99%. $POL It has been used as a PoS fuel token since September 2024.
- polygon doc — Primary references $POL10 billion preliminary provide, 2% emissions break up, PIP-26, and Mint cap.
- polygon — Official announcement of sPOL and staker rewards push.
- coin market cap — Present circulating provide (roughly 10.65 billion), no most provide, and market information.
- Defilama — Polygon DeFi TVL (approx. $1.11 billion) and stablecoin market cap (approx. $3.7 billion) as of June 2026.
- A make investments — Day by day report for early 2026 $POL Combustion, staking lockup, and the connection between emissions and combustion.
