POLY is the native token on Polymath, a decentralized platform that facilitates the issuance, management, investment, and compliance of security tokens. The development of the platform is funded by the Polymath Reserve, which receives roughly 3.5% of initial tokens every 100 days. Polymath simplified the regulatory challenges of issuing a security token by creating the ST20 token standard. Security tokens, unlike most digital assets, are intended to represent an ownership stake that gives the holder a claim on wealth that is generated by the token issuer.
The ST20 standard integrates KYC compliance into the token by restricting trading to pre-approved wallet addresses. The POLY token is used to pay for the issuance, investment, and development of security tokens on the Polymath platform. Issuers of security tokens can use the Polymath Token Studio, a user interface that allows the issuer to perform every function required by the token. Every time a security token is issued on the Polymath platform, a smart contract is created that stores and oversees the specific requirements of that asset. Developers can build and view these smart contracts directly through the Polymath platform.