Polygon Armed With Tokenomics 2.0 for L2 War

DongHyun Kang
Research Associate/
Jul 28, 2023

Table of Contents

1. Notable Change in Polygon 2.0 Tokenomics

2. $POL to be converted into a Deflationary → Inflationary token

3. All’s to Secure Capital for Polygon’s Layer 2 Competition and Validator Rewards

4. Limited Selling Pressure Expected Despite Rising Inflation



1. Notable Change in Polygon 2.0 Tokenomics

Polygon Labs proposed Polygon 2.0 in June of this year to unify the liquidity of previously fragmented solutions and improve scalability. On June 19, starting with the announcement of the PoS restructuring, Polygon Labs announced changes to the stack, tokenomics, and governance. Polygon Labs has proposed this agenda to the Governance Forum, and given that Polygon's governance has been centered around Polygon Labs, it’s expected that this change to pass with flying colors.