What Is Polygon (POL)?
Ethereum's Leading Layer-2 Scaling Solution
Polygon is a Layer-2 scaling solution for the Ethereum blockchain, designed to provide faster and cheaper transactions. Its native token — originally MATIC, now rebranded to POL — powers all transactions and governance across the network.
Polygon was launched in October 2017 as Matic Network by co-founders Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, all of whom were deeply embedded in the Ethereum developer community. In 2021, the project rebranded to Polygon to reflect its expanded ambitions beyond a single sidechain. In September 2024, the native token completed a migration from MATIC to POL as part of the Polygon 2.0 roadmap.
How Polygon Works
Polygon operates as a parallel blockchain alongside the Ethereum mainnet. Users "bridge" tokens from Ethereum to Polygon and interact with applications through compatible wallets such as MetaMask or Coinbase Wallet. The network uses a Proof-of-Stake (PoS) consensus algorithm, meaning validators stake POL to propose and confirm blocks. This allows Polygon to achieve up to 65,536 transactions per block — dramatically higher throughput than Ethereum's mainnet.
Polygon uses a customised version of the Plasma framework, which runs through Ethereum main-chain checkpoints. This design inherits a degree of Ethereum's security while offloading computation to the Polygon sidechain.
Polygon effectively transforms Ethereum into a full-fledged multi-chain system, akin to Polkadot or Cosmos but with the advantages of Ethereum's security and vibrant ecosystem.
Polygon Documentation
What Is the POL Token Used For?
POL (previously MATIC) serves several functions within the Polygon ecosystem. It is the native gas token used to pay for all transactions on the Polygon PoS chain. It is also the network's staking token — validators and delegators lock up POL to help secure the network and earn staking rewards in return. Additionally, POL holders participate in on-chain governance, voting on proposals to upgrade or modify the protocol.
A significant application of POL is in decentralised finance. Businesses and individuals use it to power financial services such as lending, borrowing, and trading on DeFi platforms like Aave, Uniswap, and QuickSwap that have deployed on Polygon. These services benefit from the network's low transaction costs, often just fractions of a cent per transaction compared to several dollars on Ethereum mainnet.
Polygon 2.0 and the AggLayer
The Polygon 2.0 vision introduces the AggLayer — an aggregation layer designed to unify multiple zero-knowledge Layer-2 chains into a single, interoperable network. Under this framework, POL is set to replace MATIC as the staking token for all connected chains, significantly expanding its utility beyond the original PoS chain. Stakers who help secure the network also become eligible for ecosystem airdrops from projects launching on the AggLayer.
Key Partnerships and Ecosystem
Polygon has attracted more than 50 decentralised applications to its PoS-secured Ethereum sidechain. High-profile ecosystem participants include leading DeFi protocols (Aave, Uniswap, PoolTogether), enterprise and consumer brands (Adobe, Nike, Reddit, the NFL, Walt Disney), and major payment infrastructure players exploring stablecoin settlement on the network.