Matic Network (MATIC) focuses on scalability and security improvements via the Ethereum network. This project is built through the utilisation of the PLASMA framework and functions on off-chain development.
- Matic aims to eliminate slow block confirmations and reduce high fees.
- Assets on different side chains across various blockchains will be made inter-operable by Matic Network in the near future.
- This protocol claims to scale to millions of transactions on a sidechain tree architecture.
The Matic team is striving to bring blockchain technology mainstream. Through their strong focus on usability and efficiency, they could be a key player in the future of blockchain development.
What is the MATIC Token?
As mentioned, while Polygon has significantly expanded its initial vision laid out by the Matic Network, it retains the MATIC utility token.
MATIC is used for several reasons in the Polygon ecosystem, including network participation via governance voting on Polygon Improvement Proposals (PIPs), and contributing to security with staking as well as paying gas fees.
This outlines three use-cases for the Matic token, which are common uses for utility tokens in the industry. As of March, this year, it remains to be seen whether functionality will be expanded for additional utilities.
Main features of the Matic Token
Matic tokens are released into the market on a monthly basis. The current circulating supply stands at 4,877,830,774 tokens, and the maximum supply is capped at 10,000,000,000.
During the private sale in 2017, 3.8% of the maximum supply was issued. Fast forward to the April 2019 launchpad sale and another 19% was sold at $0.00263 per token. This sale generated $5 million.
The remaining tokens are distributed in the following manner:
- Team tokens: 16% of the max supply.
- Advisor’s tokens: 4% of the max supply.
- Network operations tokens: 12% of the max supply.
- Foundation tokens: 21.86% of the max supply.
- Ecosystem tokens: 23.33% of the max supply.
According to the official release schedule, all tokens will be released by December 2022.
Aside from these tokenomics, Polygon’s vision is to extend support to a variety of decentralised financial applications (DeFi) outside the Ethereum ecosystem. Currently, Polygon only supports the Ethereum basechain, but Polygon aims to become an interoperable Layer 2 blockchain platform.