The MATIC token is a digital asset used to fund transactions and staking in the Polygon matic tokenmatic network. MATIC tokens are used to vote on PIPs, participate in network governance, stake for rewards and pay gas fees. Holders stake their tokens as collateral to maintain the security of the network. In return, they receive MATIC. In addition, users can delegate their MATIC tokens to validators who get a share of the staking rewards.
The Polygon Crypto MATIC token has a scalability factor that sets it apart from other coins. The network uses Proof-of-Stake as its consensus model, which has advantages over other blockchains. First, it is much faster than a regular subway train, making fewer stops and moving more quickly. Second, it utilizes a variety of different technologies that link to the main Ethereum blockchain. Finally, it uses a proof-of-stake consensus mechanism, which enables its users to earn MATIC.
In addition, MATIC tokens are burned as base fees, with a supply of only 10 billion. This has a deflationary effect on the digital asset, though the core team has projected that it will burn 0.27% of its supply a year, which equates to about twenty-seven million tokens per year. Moreover, Polygon’s algorithm is designed to reward users with MATIC tokens, and MATIC is the default currency for cryptocurrencies in the network. Therefore, MATIC price can fluctuate in either direction, so investors must keep an eye on these factors as well as the market trend.
The Matic PoS chain and Plasma chains are the two basic scalability solutions in the Polygon crypto ecosystem. The project’s developers are actively working to include more scaling options, including ZK rollups, optimistic rollups, and enterprise chains. The Matic PoS chain is the starting point for Polygon projects, and it uses a Layer 2 implementation of Plasma, a framework for creating scalable decentralized applications.
The MATIC token, a native token of the Polygon project, continues to gain traction and price growth. It rose over 120% in May during the crypto market correction, and by 845 percent in January 2020 when the Bitcoin price plunged. The rise of MATIC has been attributed to many DeFi protocols moving to Polygon’s Ethereum sidechain. As a result, their gas fees soared 845 percent in one year.
Layer 2 solutions
A layer 2 solution in Polygon crypto will allow the network to scale and increase transaction throughput. The company is working to add new features to the platform and is planning to roll out ZK-rollup technology by the year 2021. In the meantime, they are also working with partners like GameOn Entertainment Technologies Inc. and Wanchain to integrate their platform. The company’s ultimate goal is to play a key role in infrastructure and help Ethereum scale together.
The Ethereum blockchain has been plagued with problems. High transaction fees, slow block finality, and network congestion slow down Ethereum transactions. A layer 2 solution like Polygon would solve these issues and help Ethereum gain massive adoption. It would also provide a framework and infrastructure for building Ethereum-compatible blockchains. In addition, Polygon can reach up to 65K TPS and have near instant block finality, which could significantly reduce gas costs.
The Polygon cryptocurrency protocol supports governance voting and snap vote. Validators and governance token holders are granted voting power, which is important for the smooth functioning of the network. A Snapshot voting design allows Validators to vote on proposals with their own Owner addresses. One address = one vote, which corresponds to the off-chain consensus within the Validator community. To further increase the legitimacy of the voting process, Validators are rewarded for their contributions.
The Data Bridge connects the Polygon and Ethereum chains and serves as a cross-chain synchronizer. The Data Bridge synchronizes Ethereum and Polygon chains and runs validator nodes that cache snapshots and historical data from Ethereum. These nodes then deliver user signatures to Polygon. As a result, the data bridge is a full-stack ecosystem for developers. In the future, it could also support multiple DAOs, including ethereum and BTC.