$POL (Polygon Ecosystem Token) is the native gas and staking token of the Polygon network (@0x polygon) is one of the most well-known Ethereum layer 2 scaling networks that runs proof-of-stake. It pays for transactions, secures the chain through staking, and gives holders a say in how the ecosystem spends their finances. $POL replaced Matic In 2024, it was built to do what MATIC couldn’t do: protect many chains at once.
If you own MATIC, you probably $POL Regardless of whether you lift your finger or not. Here we explain what tokens are, how the switch was made, and how they work in practice today.
From MATIC to $POL: What has changed?
of polygons The first token was MATIC. In July 2023, the team proposed replacing this with: $POL As part of the Polygon 2.0 roadmap. The transition started on September 4, 2024 at a 1:1 ratio, so no new tokens were created and the starting supply reflected approximately 10 billion of MATIC.
In the Polygon PoS chain, the swap was automatic. MATIC balance is like this $POLand most users only saw the ticker change in their wallet. Holder equipped with MATIC Ethereum Alternatively, exchanges required manual migration through the official Polygon portal. According to Polygon, approximately 99% of MATIC $POL About a year after launch, all transactions on Polygon PoS $POL It has been used as a native gas token since September 2024. The upgrade also expanded the scope of staking. $POL Validators can be given permissions such as block generation and zero-knowledge proof generation.
This was an upgrade and not a new token sale. The goal was to turn a single chain’s tokens into tokens that can power an entire network of chains.
what to do $POL Would you actually do that?
$POL I have three jobs to do today.
gas: Pay transaction fees on the Polygon PoS network. The network focuses on payments and high-volume apps, as fees typically cost less than a penny.
Staking: Locking validators and delegators $POL Secure chains and earn rewards. These rewards come from the issuance of new tokens and a portion of network fees. Approximately 3.6 billion as of early 2026 $POL Nearly a third of the supply was locked in staking contracts.
In April 2026, Polygon gave away its locked capital somewhere to go. We have launched sPOL, the first native liquid staking token. stake $POL Through it, sPOL is returned. This is a received token that can be used as collateral or liquidity across DeFi, but the underlying $POL Continue to earn rewards. The key is to make good use of your unplayed bets. Before sPOL it was only about 4-5% of stakes $POL was far behind Ethereum in liquidity, where most of the ETH staked was in liquid staking.
Governance: $POL Holders help determine how community treasury funds are used, such as grants and development funds.
$POL It’s also central to Polygon’s long-term plans. AggLayer, Polygon’s system for linking separate chains into a single network with shared liquidity, has been running on mainnet since early 2025, connecting a growing number of chains. Works that are still undergoing final adjustments are $POLRole in it: the idea of “one stake, many chains” where validators secure multiple chains with the same stake. $POL. The infrastructure is operational, but the staking and fee structure that ties it together is $POL It is still maturing.
how $POLTokenomics approach?
$POL We started with 10 billion tokens. By mid-2026, circulating supply reached nearly 10.65 billion, with no maximum supply set.
The token has a 2% annual emissions built-in. According to Polygon’s documentation, this will be split between 1% for validator and staking rewards, and 1% for a community treasury that funds grants and ecosystem growth. This schedule began after the original MATIC compensation plan ended in 2025, and the rates were later adjusted through a community vote known as PIP-26. Governance may change emissions in the future, but smart contracts will limit new emissions. $POL Can be cast.
There is no hard supply cap. Polygon intentionally chose an inflation model so it funds emissions security and development on a predictable schedule, rather than relying on fee income that can dry up when activity slows down. The tradeoff is dilution. new $POL It circulates every year, regardless of whether the network is profitable or not, and will only work in the long run if usage increases with enough rate burn to offset new supply.
where is it $POL Used?
Beyond gas and staking $POL It belongs to a wide range of activities.
- payment and stable coinincluding cross-border remittances and merchant payments. This is currently one of Polygon’s main pitches, with approximately $3.7 billion of stablecoins issued on the network.
- DeFi covers lending, borrowing, trading, and liquidity, with approximately $1.1 billion locked in the Polygon DeFi protocol as of June 2026.
- Gaming and NFTs are all about low fees and quick confirmation.
- Real world assets and institutional usage such as tokenized funds and regulated staking.
The network processed approximately 1.4 billion transactions in 2025. This shows that on-chain usage, not just transactions, is driving demand for the token.
teeth $POL Inflation or deflation?
This is where the simple label “inflation” breaks down.
on paper $POL Emissions add 2% to supply per year. However, Polygon PoS still consumes a portion of every transaction fee, which is the same EIP-1559 mechanism that Ethereum uses. If the network is congested, those burnt can outweigh new emissions.
In early 2026, that’s exactly what happened. Polygon reported about 1 million burn injuries each day $POL Usage has skyrocketed to about 3.5% of annual supply, outpacing the 2% annual increase in emissions. during those stretches $POL Even if the design is inflationary, it is deflationary in nature.
So everything depends on the actual network activity. Emissions are fixed and predictable. There are no burns. The more a network is used, the more secure it becomes. $POL You get the supply.
source of information
- polygon — The official blog confirms that the migration has reached 99%. $POL It has been used as a PoS gas token since September 2024.
- polygon document — Main references $POL10 billion initial supply, 2% emissions split, PIP-26, and Mint cap.
- polygon — Official announcement of sPOL and staker rewards push.
- coin market cap — Current circulating supply (approximately 10.65 billion), no maximum supply, and market data.
- Defilama — Polygon DeFi TVL (approx. $1.11 billion) and stablecoin market cap (approx. $3.7 billion) as of June 2026.
- A invest — Daily report for early 2026 $POL Combustion, staking lockup, and the relationship between emissions and combustion.
