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Ethereum L2

What is Matic token used for?

What is Matic Network?


Matic provides scalable, secure and instant transactions for public blockchains using Plasma.

How Matic Network works


1. User deposits crypto assets in Matic contract on the mainchain (contract deployed on Ethereum chain).
2. Corresponding tokens get reflected on the Matic chain.
3. The user can now transfer tokens almost instantly.
4. A user can withdraw remaining tokens from the main chain by establishing proof of remaining tokens on Root contract (contract deployed on Ethereum chain).

More here.

What is Matic token used for?


  • Pay rewards to block producers and proof publishers.

The Matic token


Matic staking


– 12% of its total supply of 10 billion tokens allocated to fund the staking rewards. Transaction fees will fund the network long term.

Validator Rewards = Staking Rewards + Transaction Fees

Staking rewards are elastically calculated

  • With 5 % of supply staked: 120 % APY
  • With 40 % of supply staked: 15 % APY

Slashing

  • 2–5% slashing if a validator double signs a checkpoint.

More about staking and slashing here.

Docs


Docs

Whitepaper

Token issuance


Total supply: 10 000 000 000

12% staking rewards per year.

Matic price


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