Council Transparency Report: PIP-26

Polygon Improvement Proposals Council Transparency Report
1

Report Author: Mudit Gupta(on behalf of the Polygon Protocol Council)

Address: 0xf29722a899Aa9FD0836076CA1dA64212c451453C

Relating to:

  1. PIP-26: Transition from MATIC to POL Validator Rewards, and discussed on Polygon Protocol Governance Call 10 and Polygon Protocol Governance Call 21

Change type: Regular change via the emergency track with PC Consensus: 10/13

Introduction

This document is an official communication between the Polygon Protocol Council and the community. It aims to provide transparency to all community members regarding upcoming regular network changes.

In this transparency report, the Protocol Council (ā€˜PCā€™) outlines the execution details of an upgrade to the POL DefaultEmissionManager.sol contract.

The upgrade contains:

PIP-26 execution in accordance with the POL emission schedule in PIP-26: Transition from MATIC to POL Validator Rewards, discussed in Polygon Protocol Governance Call 11 and Polygon Protocol Governance Call 21. Validator rewards will be reduced from 1.5% to 1%.

Motivation

Execute an upgrade to the EmissionManager.sol to schedule POL emissions inline with the original commitments of the genesis MATIC Validator Rewards Schedule before commencing the aforementioned Polygon 2.0 validator reward schedule.

Execution

The subsequent section of the code provides a detailed overview of the execution specifications related to the proposed system smart contract change. These specifications are essential to understand the functioning and implementation of the upgrade:

Part 1:

Deploy New DefaultEmissionManager implementation

The new version of the DefaultEmissionManager has been deployed here

Part 2:

Call mint() on existing DefaultEmissionManagerProxy:

This will be part of the transaction batch proposed to the Emergency Protocol Council

Part 3:

Use ProxyAdmin to call ā€œupdateAndCallā€, effectively updating the DefaultEmissionManagerProxy and calling ā€œreinitialize()ā€ on the new implementation, setting the new start supply and startTimetamp.

ProxyAdmin is 0xEBea33f2c92D03556b417F4F572B2FbbE62C39c3

Inputs for ā€œupgradeAndCallā€

proxy: 0xbC9f74b3b14f460a6c47dCdDFd17411cBc7b6c53 (DefaultEmissionManagerProxy)

Implementation: 0x282FD46E108E40A45e4CE425bA75f80245e6C2E0 (address of the new deployed DefaultEmissionManager implementation)

data: 0x6c2eb350 (encoded function call to the ā€œreinitializeā€ function of our new implementation)

Calling the ā€œupgradeAndCallā€ function with these inputs will result in the ProxyAdmin calling the ā€œupgradeToAndCallā€ function on the TransparentUpgradeableProxy (proxy from the inputs), which will upgrade the implementation and execute the ā€œreinitializeā€ function.

This will set the START_SUPPLY_1_4_0 to the current supply and startTimestamp to the current blocktime.

The result is the payload that is pasted below. It will be provided to the Emergency Security Council to execute the transaction 7 July 2025.

To:
eth:0xEBea33f2c92D03556b417F4F572B2FbbE62C39c3

Value:

0

Payload:
0x9623609d000000000000000000000000bc9f74b3b14f460a6c47dcddfd17411cbc7b6c53000000000000000000000000282fd46e108e40a45e4ce425ba75f80245e6c2e0000000000000000000000000000000000000000000000000000000000000006000000000000000000000000000000000000000000000000000000000000000046c2eb35000000000000000000000000000000000000000000000000000000000

Part 4: Execution (in Safe)

The scheduled proposal can be executed by calling the function ā€œexecuteā€.

Part 5: Validation

Once the upgrade is done, we can check the following things:

INTEREST_PER_YEAR_LOG2 should now be 0.02856915219677089e18; // log2(1.02)

START_SUPPLY_1_4_0 should be the last totalSupply before the upgrade.

startTimestamp should be equal to the blocktime of the upgrade transaction.

  1. Polygon Forum: https://forum.polygon.technology/ is a discourse forum for governance-related discussions. Community members must register for an account before sharing their views.
  2. Read more about PIP-29: Polygon Protocol Council here: https://github.com/maticnetwork/Polygon-Improvement-Proposals/blob/main/PIPs/PIP-29.md
  3. Mainnet Review: new implementation, upgrade transaction (in Safe)

Copyrights

All copyrights and related rights in this work are waived under CC0 1.0 Universal.

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Thanks for the transparency update. Itā€™s good to see PIP-26 being executed with clear alignment to the original validator reward schedule. Reducing rewards from 1.5% to 1% as planned is a key step in the transition to POL. Appreciate the technical clarity and timely governance process.