POL (ex-MATIC)
Crypto Overview
Purpose and Utility
POL (formerly MATIC) is the native token of the Polygon network, a layer-2 scaling solution for Ethereum. Its primary purposes are: governance voting on Polygon Improvement Proposals (PIPs), securing the network through staking, and paying transaction fees on the Polygon network.
Business Model Evaluation
The business model focuses on providing faster and cheaper transactions while maintaining Ethereum's security. The platform enables developers to build and deploy decentralized applications (dApps) with lower costs. The token's utility is transparent and well-documented, with clear technological use cases that don't involve prohibited activities.
Real-World Adoption
Polygon has achieved significant adoption, with over 37,000 dApps deployed on the network as of 2024. Major companies and platforms including Reddit, Starbucks, and Adobe have integrated Polygon technology. The network processes millions of transactions daily, demonstrating substantial real-world usage.
Platform Development
The project maintains active development with regular updates and improvements. The recent rebranding from MATIC to POL in 2024 came alongside significant technical upgrades including the Protocol-Owned Liquidity (POL) system. The developer community is robust, with thousands of active contributors.
Token Distribution
Initial token distribution allocated 23.4% to the founding team and advisors, with four-year vesting periods. Current circulation shows a relatively well-distributed token supply, with no concerning concentration of ownership.
Additional Considerations
The staking mechanism involves securing the network through Proof of Stake, which is permissible as it provides a legitimate service. The platform doesn't facilitate lending or interest-bearing products directly, though some dApps built on Polygon may involve such activities.
Crypto Impact
To assign a comfort level investing in POL (ex-MATIC) from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to POL (ex-MATIC).
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.