The supply of POL will exceed MATIC’s original upper limit of 10 billion, and will be issued at a rate of 2% in the next 10 years.

According to the Daily Planet report, the POL white paper shows that in order to ensure rewards for validators and support for the ecosystem, in addition to the initial supply of 10 billion POL (all converted from MATIC), it will also be issued at a specific rate each year.
Specifically, in terms of validator rewards, Polygon recommends setting the annual issuance rate of POL for this channel to 1% of the supply. In the first 10 years, this rate cannot be changed. After that, the community can decide the specific value through the governance framework, but the issuance rate will never exceed 1%. In terms of ecosystem support, Polygon also recommends setting the annual issuance rate of POL for this channel to 1% of the supply. Like the issuance of validator rewards, this value can be reduced through the governance framework after 10 years, but it will never exceed 1%.
Polygon explained that the reason for this setup is that the Polygon ecosystem and Web3 in general still need time to further mature and achieve mainstream adoption. Based on historical Internet and computing platform adoption cycles, the maturity stage may actually take about 10-15 years. During this period, the ecosystem will require continued economic support.
It is worth mentioning that in MATIC’s previous token economic model, the upper limit of token supply was fixed at 10 billion.
As previously reported, Polygon has proposed a technical upgrade to its native MATIC token as part of the Polygon 2.0 roadmap. Pending community approval, MATIC will be converted to Polygon (POL), with the POL token designed to run across all Polygon protocols, including PoS, zkEVM, and Supernet. The overall goal of the upgrade is to ensure the scalability of the ecosystem without compromising security.
The upgrade plan from MATIC to POL is very simple. Token holders need to send their MATIC tokens to a specific smart contract, which will then return an equivalent amount of POL tokens. Polygon proposed giving token holders a grace period of at least four years to complete the upgrade process.