The fuel for Polymesh
We like to think of POLYX as the fuel for Polymesh; it enables the creation and management of security tokens, drives POLYX holder participation through governance, and secures the chain through staking.
Utility tokens provide access to a blockchain-based infrastructure and are designed for use within that ecosystem only. POLYX is a utility token under Swiss laws, based on guidance from the Swiss financial regulator FINMA.
POLYX is used for paying transaction fees as well as a whole range of other functions related to the network’s operations, such as voting on governance proposals or staking on node operators. With these functions tied together, an ecosystem emerges on Polymesh with POLYX at the centre.
Polymesh Tokenomics describes the mechanics for how POLYX is used on the blockchain.
The POLYX supply approaches an asymptotic limit, with new POLYX created based on an algorithmic supply schedule. To learn more, see the Polymesh white paper.
The main mechanism to build the supply of POLYX is through the one-way POLY:POLYX upgrade bridge allowing users to upgrade their Ethereum-based POLY tokens to POLYX on Polymesh.
POLY can be upgraded to POLYX at a 1:1 ratio (i.e. 1000 POLY = 1000 POLYX). The Polymesh Governing Council will maintain the POLY to POLYX Upgrade Bridge for at least one year following the launch of Polymesh mainnet.
Polymath will upgrade between 240 million and 250 million POLY to POLYX to be deposited in the Polymesh Network Treasury.
Newly minted POLYX will be created for block rewards with a maximum of 14% of the total supply minted annually. To prevent continuous acceleration of inflation, the amount of newly minted POLYX used for rewards will be fixed at 140 million annually once the supply reaches 1 billion POLYX.