Polygon Completes the Last Token Unlock, Will MATIC Price Rise?

Check the Crypto Market Today:

Polygon (MATIC ), one of the world's leading blockchain platforms, has completed the unlocking of their last token, MATIC, on Thursday, February 22, 2024. Thus, the entire supply of 10 billion MATIC tokens has been circulating in the market, opening up opportunities for MATIC to become a deflationary crypto asset.

What Is MATIC and How Does It Work?

MATIC is the native token of Polygon, a protocol that enables the construction and operation of various large-scale blockchain networks compatible with Ethereum. Polygon offers a fast, cheap, and secure scalability solution for developers of decentralized applications (dApps) and end users.

MATIC has several important functions in the Polygon ecosystem, including:

• As a means of payment for transaction fees (gas) on the Polygon network.
• As an incentive for validators who maintain the security and stability of the Polygon network.
• As a governance tool for token holders who can vote in decisions affecting the Polygon protocol.

MATIC follows the dynamic supply model often used by proof-of-stake (PoS)-based blockchains. That is, the number of MATIC tokens in circulation can increase or decrease depending on activity on the Polygon network.

To finance the reward for validators, Polygon created a new token called "emission". However, to balance the amount of new tokens generated by emissions, a portion of the MATIC used to pay for gas will be permanently removed from circulation through a burning mechanism.

In other words, as long as there is enough transaction activity on the Polygon network, the net effect of emissions and burning will reduce the amount of MATIC token supply. This means that MATIC can become a deflationary crypto asset, i.e. the value of the token will increase as the number of tokens available decreases.

Also Read How to Buy Crypto:

What Does Last Unlock Token Mean for MATIC?

When Polygon (formerly known as Matic Network) first launched its MATIC token, stakeholders earned 32.3% of MATIC's total supply. Meanwhile, the remaining tokens are stored in locked vesting contracts, and will only be released to the market gradually over several years.

On Thursday, February 22, 2024, the vesting contract released the last batch of 273 million MATIC tokens to the Polygon Foundation. This amount is equivalent to $253 million (Rp 3.6 trillion) based on the current price of MATIC. Thus, the entire supply of 10 billion MATIC tokens has been circulating in the market, marking the end of the MATIC token distribution process.

This last token release had a positive impact for MATIC, as it removed the inflationary pressure caused by the release of new tokens into the market. Without the release of new tokens, it will be easier for MATIC to reach a deflationary state, provided there is enough demand and transaction activity on the Polygon network.

Selain itu, pembebasan token terakhir ini juga menunjukkan komitmen jangka panjang Polygon Foundation terhadap pengembangan dan pertumbuhan ekosistem Polygon. Polygon Foundation adalah entitas nirlaba yang bertanggung jawab untuk mengelola dana, sumber daya, dan kebijakan dari protokol Polygon. Polygon Foundation juga berperan sebagai validator untuk jaringan Polygon, yang berarti mereka akan mendapatkan imbalan dari emisi token.

Apa yang Akan Terjadi Selanjutnya dengan MATIC?

Although the final token release has been completed, it does not mean that Polygon will stop innovating and evolving. Polygon is constantly developing new features and services to improve the user and developer experience on their network.

One of the latest innovations from Polygon is the introduction of a redesigned protocol architecture. As part of the transition to Polygon 2.0, Polygon announced that MATIC would be replaced by a new token: POL. POL will be the gas and governance token for Polygon's various chains based on zero-knowledge proof (ZK), a technology that enables fast, cheap, and secure transactions at scale.

To enable a 1 to 1 migration from MATIC, POL has an initial supply of 10 billion tokens, the same as MATIC. An exchange contract that allows MATIC holders to exchange their tokens for POL has been launched in October 2023. Polygon plans to launch Polygon 2.0 in the summer of 2024, which will bring various improvements and new possibilities to the Polygon ecosystem.

Thus, MATIC still has bright prospects in the future, both as the native token of Polygon 1.0 and as the predecessor token of POL. By becoming a deflationary crypto asset, MATIC can attract interest and investment from Polygon enthusiasts and users, as well as increase the value and usefulness of the token.

Check Crypto Price Today:

How to Buy Polygon (MATIC) on Bittime

You can buy and sell Polygon (MATIC) in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.

Polygon (MATIC) is available on Bittime with the market pair MATIC/IDR. To be able to buy MATIC IDR at Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.

Learn the complete guide on how to buy Polygon (MATIC) on Bittime.

Monitor the price chart movements of Polygon (MATIC), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

Polygon (MATIC) Outperforms Solana (SOL) In Weekly NFT Sales

Polygon Deploys POL Token on Ethereum Mainnet

How to Buy and Sell NFTs on Polygon

DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.

significant from time to time and Bittime is not responsible for changes in fluctuations of crypto asset exchange rates.