Polygon (POL): A comprehensive overview of an ecosystem of Ethereum scaling solutions

What is Polygon?

Launched in 2017 under the name Matic Network, Polygon is now one of the most iconic protocols in the Ethereum ecosystem. Initially designed as a scalability solution, it quickly evolved into a multi-chain infrastructure supporting several types of Layer 2 networks, including both sidechains and zk-rollups.

Polygon’s core mission has remained unchanged: to improve Ethereum’s scalability without compromising security, decentralization, or user experience. Polygon was one of the first protocols to offer a concrete solution to this challenge as early as 2021, at a time when Ethereum adoption was limited by network congestion and prohibitively high gas fees.

The Polygon PoS sidechain, running on Proof of Stake, quickly became a reference point, with a dynamic ecosystem of over 700 dApps—making Polygon one of the most widely used blockchains in the world.

Over time, many other Layer 2 solutions for Ethereum have emerged, diluting Polygon’s initial competitive edge. As a result, the market cap of its token (POL, formerly MATIC) is now far below its 2021 peak—roughly $2 billion today, compared to over $20 billion at the time.

In response, the Polygon team took a major strategic turn in 2024: completely rethinking the protocol’s architecture. This overhaul, called Polygon 2.0, embodies an ambitious new vision: to build a scalable network of interconnected blockchains, powered by Zero-Knowledge technology.

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Polygon Solutions

Polygon PoS

Launched as Matic Network in 2020, Polygon PoS was the first solution developed by Polygon Labs. It’s based on an EVM-compatible sidechain model, with independent block production but regular finality checkpoints anchored to Ethereum. This hybrid architecture allowed Polygon to offer fast execution, low transaction fees, and native compatibility with the Ethereum ecosystem.

Technically, Polygon PoS relies on three distinct layers: an execution layer (based on the EVM), a block production layer called Bor, and a finality layer named Heimdall. The latter uses Tendermint to coordinate validators and post checkpoints to Ethereum approximately every 30 minutes.

However, this architecture comes with trade-offs. Unlike rollups, Polygon PoS does not rely directly on Ethereum for its security, but on its own validator set (currently 105 validators). This setup exposes the network to theoretical risks of collusion and a degree of centralization—frequently pointed out by industry observers.

To address these limitations, Polygon Labs announced a major transformation in 2023: to evolve Polygon PoS into a “zkEVM validium” architecture. In this model, transactions are still executed off the Ethereum main chain, but cryptographic validity proofs (ZK proofs) are published on Ethereum. This upgrade maintains the scalability of the sidechain while granting it rollup-level security.

Most importantly, this migration is part of a broader vision: Polygon 2.0—a unified, interoperable network of ZK-based blockchains built on a common architecture (which we will explore in the next sections). In this model, Polygon PoS validators will be able to secure multiple chains simultaneously via a restaking mechanism based on the new POL token.

→ For more details, check out the Polygon PoS documentation.

Polygon zkEVM

Unveiled in 2022 and officially launched on mainnet in March 2023, Polygon zkEVM represents one of Polygon’s most significant advancements. It is a Layer 2 solution built on zero-knowledge rollup (ZK-rollup) technology, offering full compatibility with the Ethereum Virtual Machine (EVM).

From a technical standpoint, this solution uses a zkEVM execution engine developed by Polygon Zero (a branch of Polygon Labs following the acquisition of Mir Protocol). It can natively interpret Solidity and EVM bytecode, allowing developers to use the exact same tools they use on Ethereum without rewriting their code for a new environment.

Polygon zkEVM functions like a true rollup: transactions are aggregated off-chain, executed, and compressed into a validity proof. This proof is then submitted to Ethereum to verify the entire batch of transactions. In addition to significantly lowering per-transaction costs, this mechanism provides fast finality and high security.

It’s important to note that Polygon zkEVM is not intended to replace Polygon PoS. Both solutions coexist within the Polygon ecosystem with complementary use cases. While Polygon PoS prioritizes speed and low costs, zkEVM positions itself as a more secure alternative for applications requiring strong resilience and Ethereum-level verifiability.

Despite gaining attention thanks to Polygon’s brand and rumors of an airdrop that temporarily boosted activity, Polygon zkEVM has not achieved the anticipated success. The blockchain’s total value locked (TVL) is currently only a few million dollars, far below community expectations.

→ For more information, explore the Polygon zkEVM documentation.

Polygon CDK

The Polygon CDK (Chain Development Kit) is an open-source toolkit launched in 2023 that allows any project to easily create its own ZK Rollup blockchain. It plays a central role in Polygon’s ambition to build the Supernet, a collection of interoperable zkEVM networks.

One of the CDK’s main strengths is its modularity. Developers can tailor their chain’s configuration to fit their needs: governance model, transaction fees, gas token, validator setup, degree of centralization or decentralization, data availability mode (rollup or validium), and the choice of virtual machine.

Several projects have already adopted the CDK, including Astar ZK, OKX, and Immutable zkEVM.

→ To learn more, check out the Polygon CDK documentation.

Polygon Miden

Developed in-house by Polygon Labs, Miden takes a fundamentally different approach from other zkEVM solutions. Rather than aiming for EVM compatibility, Miden introduces a zk-native execution environment optimized for performance, flexibility, and scalability.

At the heart of Miden is the Miden VM, a virtual machine written in Rust and specifically optimized for STARK proofs. This technological choice stems from the belief that to fully leverage the potential of ZK-proofs, it is necessary to break free from the historical limitations of the EVM.

Miden's programming language is called Miden Assembly. It is considered low-level and is designed to be compiled into instructions executable by the Miden VM, maximizing proof generation efficiency. In the future, higher-level languages may be introduced, but the current architecture already supports the development of complex decentralized applications.

Miden is still under active development, but its advanced specifications and zk-native positioning make it a key component of the Polygon ecosystem.

→ To explore further, visit the Polygon Miden documentation.

AggLayer

With the launch of Polygon 2.0, the Polygon team introduced a particularly ambitious new infrastructure component: the Aggregation Layer, or AggLayer. In short, it is a technological layer designed to solve the interoperability problem between Ethereum’s many blockchains.

AggLayer allows independent blockchains to behave like a unified system. Rather than having each Layer 2 communicate independently with Ethereum or with each other via bridges, AggLayer serves as a central coordination layer that synchronizes proofs and messages.

This aggregation relies on two technical pillars:

• On one hand, aggregation of validity proofs. Each ZK network within the Polygon Supernet generates its own ZK proofs to validate blocks. AggLayer gathers, compiles, and submits them collectively to Ethereum. This reduces Ethereum publication costs and ensures consistent finality across the networks.
• On the other hand, aggregation of inter-chain messages. This ensures that interactions between applications deployed on different blockchains are handled reliably, quickly, and securely.

One of the most obvious benefits is that AggLayer eliminates the need for bridges. When a user or protocol sends a message from one chain to another, AggLayer ensures that the message is processed natively on the destination chain without requiring asset wrappers or reliance on intermediary entities.

In Polygon's vision, AggLayer represents the next stage in blockchain evolution. If Ethereum introduced the monolithic thesis (where consensus, data availability, and execution are managed together) and its recent upgrades push toward the modular thesis (where each function is handled separately), then Polygon argues that the next step is the aggregation thesis.

“Aggregation provides the sovereignty and scalability of modular architectures, combined with the unified liquidity and user interface of a monolithic system — synthesizing both into something new.”

→ To go deeper, read Polygon’s thesis on AggLayer.

Architecture of Polygon 2.0

Announced in June 2023 and finalized with the transition from MATIC to POL, Polygon 2.0 is the result of several years of work, experimentation, and research by the Polygon Labs team. It represents the next phase of the project, whose vision is to build the “Value Layer of the Internet.”

The final section of the previous chapter focused on AggLayer, and for good reason — Polygon 2.0 is built on the thesis of “Aggregated Blockchains”: an infrastructure that combines the best of both modular and monolithic architectures.

Just like the suite of protocols that make up the architecture of the internet (such as TCP/IP), Polygon adopts a modular model structured around four protocol layers: Staking, Aggregation, Execution, and Proving. Let’s explore each of these layers.

Staking Layer

The Staking Layer plays a central role in securing the various blockchains within the Polygon 2.0 ecosystem. Based on a Proof-of-Stake mechanism, it relies on a shared validator pool that can be used by all blockchains in the network, with a native restaking system.

Two smart contracts on Ethereum manage this layer:

• Validator Manager: This contract handles validator registration, staking and unstaking actions, multi-chain commitments (restaking), and slashing events in case of malicious behavior.
• Chain Manager: Each blockchain in the Polygon ecosystem has its own Chain Manager smart contract, which defines its specific requirements — such as the number of validators, regulatory conditions like GDPR compliance, or the use of custom staking tokens.

This shared validator pool allows every Polygon chain to launch with a minimum level of decentralization, without having to build its own validator set. In return, validators earn rewards in POL, as well as additional revenues from transaction fees and chain-specific incentives.

Aggregation Layer (AggLayer)

The AggLayer is the cornerstone of interoperability within Polygon 2.0. We already covered it in detail earlier, but it’s worth understanding its role within the broader Polygon 2.0 architecture.

It connects all the blockchains in the network through a secure cross-chain messaging system, making the user experience feel like there’s only one blockchain.

Instead of relying on complex bridges, each Polygon chain maintains a local message queue. These messages are embedded in the ZK proofs of each blockchain, then aggregated by a dedicated component called the Aggregator. The Aggregator compiles all proofs and messages into a single aggregated proof and submits it to Ethereum.

The result: messages between Polygon chains are processed natively — no wrappers, no delays — with fast finality, Ethereum-backed security, and shared publication costs.

Execution Layer

The Execution Layer corresponds to the traditional core of any blockchain: it is responsible for executing transactions, bundling them into blocks, validating them, and maintaining the consistency of the ledger.

On Polygon, this layer is designed to be interoperable and standardized, while still allowing customization to meet the specific needs of different blockchains. It includes classic technical components such as:

• A mempool to receive transactions
• A peer-to-peer (P2P) network to connect nodes
• A consensus system between validators
• A database to store the transaction and block history
• A witness generator that prepares data to be submitted to the Proving Layer

Proving Layer

The Proving Layer is the ZK foundation of the protocol. It is responsible for generating zero-knowledge proofs for each batch of transactions executed across Polygon chains — whether intra-chain or cross-chain.

This layer is composed of several core technical elements:

• A high-performance universal prover (the successor to Plonky2), developed by Polygon’s ZK team, capable of efficiently proving any kind of state machine
• A state machine builder (optional), enabling developers to define their own execution environment through a modular and simplified interface
• Custom state machines for each chain, such as zkEVM or MidenVM, which can be written in Rust or even compiled from zkWASM

Thanks to the Proving Layer, any chain within the ecosystem can define its own execution environment, while ensuring compatibility, shared security, and native interoperability with the broader Polygon network through aggregated ZK proofs.

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The POL Token: Core of the Polygon 2.0 Architecture

With the transition to Polygon 2.0, the protocol introduces a new version of its native asset: the POL token, designed to replace MATIC. This is not just a rebranding — it reflects a deep transformation of the token’s role in a now multi-chain, modular, and ZK-secured ecosystem.

From MATIC to POL

The POL token (Polygon Ecosystem Token) is progressively replacing MATIC through a 1:1 migration process over a 4-year period. Holders of MATIC are invited to swap their tokens for POL via a smart contract deployed on Ethereum. This migration has two objectives:

• Technical: POL is designed as a future-proof token, able to natively serve all blockchains within the Polygon 2.0 supernet.
• Economic: POL introduces a new staking and validation model tailored to a multi-chain architecture, with restaking and cross-chain reward mechanisms.

POL aims to become a hyperproductive token — a native asset that serves not only as governance and gas token, but also as the foundation for shared security, allowing validators to participate in multiple Polygon blockchains and be rewarded accordingly.

Use Cases and Utility of POL

The design of POL combines several functions that place it at the center of the Polygon 2.0 economic system:

• Native gas token: Every blockchain in the supernet can adopt POL as its gas token for transaction fees, though this choice is left to each network's developers.
• Staking & Restaking: POL is used to participate in consensus. Validators must lock a certain amount of POL to secure one or more chains. Restaking allows a single validator to secure multiple chains at once, maximizing the efficiency of staked capital.
• Shared security & slashing: Each chain in the supernet can define its own validation rules, minimum security requirements, and slashing mechanisms (penalties for malicious behavior). This enables mutualized security while maintaining the sovereignty of individual chains.
• Governance: POL gives holders voting rights for future protocol decisions. While the governance DAO is not yet live, POL holders will eventually vote on critical topics such as protocol parameters, grants, or treasury management.
• Incentives & ecosystem growth: POL can be used to reward activity on certain chains, or to incentivize adoption of new solutions built using the CDK. This is essential for aligning interests across a multi-chain environment.

This model is partially inspired by the Curve Wars, encouraging projects to accumulate POL to gain influence over incentive distribution via future governance gauges. This creates sustained buying pressure for the token and aligns the incentives of all stakeholders.

Tokenomics & Emissions

The total supply of the POL token is capped at 10 billion, in line with MATIC’s current maximum supply. This amount covers the full migration as well as future emissions to compensate validators and support the ecosystem.

Emissions are governed by a predefined mechanism:

• Maximum annual emission rate: 1%, with the possibility of reduction after year ten through a governance vote.
• Long-term goal: ensure that real fees generated by applications (transaction fees, MEV, DA fees) directly fund validator rewards, making the system economically sustainable without inflation.

In other words, new POL emissions are only meant to act as an economic safety net during the early years of supernet growth. Over time, chains are expected to become self-sufficient, paying validators directly through the revenue they generate.

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Positioning and Adoption

Since its launch, Polygon has established itself as a key player in solving Ethereum’s scalability challenges. The Proof of Stake sidechain saw significant adoption (in terms of TVL, number of applications, and users) which also reflected positively on the price of MATIC.

However, the emergence of competing solutions and the long transition toward Polygon 2.0 significantly slowed down ecosystem growth. Now that Polygon 2.0 is live, the ambition is to regain leadership by offering a modular, interoperable, and ZK-secured infrastructure.

That said, while the technology holds promise, it does not guarantee that developers and users will flock to it. Over time, Polygon has fallen behind players like Arbitrum or Base as the favorite L2s among users, who often care less about technological innovation than about usable applications and great user experience.

From the standpoint of core metrics for Polygon 2.0:

• Polygon PoS: With over $700 million in TVL, Polygon PoS remains one of the most used sidechains, hosting hundreds of projects across verticals like DeFi, NFTs, and prediction markets such as Polymarket.
• Polygon zkEVM: Despite its promising technology, zkEVM adoption remains limited, with a TVL of just a few million dollars. Challenges include rising competition and the need to showcase compelling use cases.
• CDK (Chain Development Kit): The CDK has attracted major projects such as Astar ZK, OKX, and Immutable zkEVM, which have opted to build their own ZK chains using the toolkit.

From a technical perspective, Polygon 2.0 stands out thanks to a hybrid approach combining the benefits of monolithic and modular architectures. Many other scaling solutions are also targeting these areas, including:

• Layer 2 – Arbitrum, Base, etc.: While dominant in terms of TVL, Arbitrum and Base rely on more centralized architectures with single (or near-single) sequencers, raising questions about decentralization.
• Supernets – Optimism’s Superchain: The OP Stack aims to build a superchain of interoperable blockchains, but relies on optimistic rollups with longer finality delays compared to Polygon’s ZK-rollups. Still, it remains the easiest path for launching new L2s (Base, Mode, etc.).
• Data Availability – Celestia: Focused on data availability, Celestia provides a modular architecture but requires integration with other tools for full execution, unlike Polygon 2.0’s more vertically integrated approach with AggLayer. Again, real-world adoption is not yet comparable.

Despite fierce competition, Polygon remains one of the few players offering a truly comprehensive vision: a coherent ZK blockchain ecosystem, a shared security model via restaking, native proof and messaging aggregation through AggLayer, and a unified token across the network.

This transversal positioning at the intersection of Layer 2s, appchains, and modular systems may allow Polygon to reconcile often conflicting goals: performance, security, sovereignty, and interoperability. That is, if market attention and user/developer adoption follow.

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Conclusion & Outlook

With Polygon 2.0, the Polygon team delivers a complete overhaul of its architecture, aiming to become the modular ZK infrastructure of reference on Ethereum. The ambition is clear: go beyond mere scalability to provide a unified, high-performance, and interoperable environment — capable of hosting a virtually infinite number of specialized blockchains, while ensuring technical and economic consistency through the AggLayer and the POL token.

By reorganizing its ecosystem around key components (PoS, zkEVM, CDK, Miden, AggLayer) Polygon seeks to tackle the core challenges facing today’s blockchain networks: fragmented liquidity, performance limits, and trade-offs between sovereignty and security. The proposed model allows any application or project to deploy its own customized chain while benefiting from Ethereum-level security and native interoperability offered by the aggregation layer.

The POL token, successor to MATIC, sits at the heart of this vision. Designed as a “hyperproductive token,” it powers security, governance, incentive mechanisms, and cross-chain connectivity. Its economic design includes capped emissions, restaking, and native utility throughout the network, aiming to build a long-term sustainable model based on real protocol revenue.

Polygon is not merely improving what already exists, it is redefining what a Layer 2 infrastructure should be in the ZK-proof era. By proposing a modular-by-default architecture that includes powerful technical primitives and a coherent user experience, Polygon positions itself as a serious contender in the race to scale Ethereum. The challenge now is to convince developers and users to embrace this new era.