POL Token Utility and Network Security

The native Polygon token, POL (formerly MATIC), is an ERC-20 token used to secure the network via staking, pay transaction fees, and participate in governance decisions. Validators stake POL to help validate transactions and maintain network consensus through a modified Proof-of-Stake mechanism, earning rewards for their contributions. The ongoing token upgrade transitioning from MATIC to POL reflects Polygon’s evolving strategy for governance and ecosystem growth. This tokenomics plays a crucial role in network security and incentivizing participation.