The native protocol token of Polymesh
POLYX is the fuel of 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 the network protocol token POLYX at the centre.More on Tokenomics
The POLYX supply approaches an asymptotic limit, with new POLYX tokens created based on an algorithmic supply schedule. To learn more, see the Polymesh whitepaper.
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 tokens on Polymesh at a 1:1 ratio.
The Polymesh Governing Council will maintain the POLY: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.