TLDR:
- On September 4th, 2024, the Polygon network will commence its transition from using MATIC as a native token to adopting POL.
- With this transition, POL will become the new standard gas and staking token for the Polygon PoS blockchain.
- This token migration is outlined in Polygon's 2.0 strategic roadmap, a plan aimed at transitioning toward a zkEVM system.
- The starting exchange rate for this token swap is set at 1:1, with an expected 2% annual emission over a decade.
- If you're a MATIC token holder on the Polygon PoS network, just sit tight; the switch will handle itself. Those on other systems might need to step in manually.
On September 4th, 2024, the well-known Ethereum scaling platform Polygon began a significant movement by shifting its native token from MATIC to POL. This upgrade is a pivotal development in Polygon's long-term plan, tagged as Polygon 2.0, with a goal to transform the network into a zero-knowledge Ethereum Virtual Machine system.
This transition swaps MATIC out for POL, making POL the go-to for gas and staking on the Polygon Proof-of-Stake chain.
As per Marc Boiron, CEO of Polygon Labs, the upgrade was needed because the keys to upgrade MATIC were deliberately disposed of long ago. POL brings more flexibility in terms of token issuance and supports ecosystem expansion.
Just a heads-up: Tomorrow is the day when MATIC transforms into POL. Stay tuned! š«”
The essence of the upgraded token is as follows:
With the new tokenomics, POL will be minted at a rate of 2% per year over a span of 10 years. This planned inflation serves to bolster ecosystem development and continuously reward validators. Initiating a one-to-one value conversion, the total supply remains at 10 billion. https://t.co/brdQT9WeFa pic.twitter.com/D63qiqdZPX
ā Polygon Aggregated (@0xPolygon) September 3, 2024
For the majority of users, especially those with MATIC assets on Polygonās PoS chain, the transition will be seamless, needing no action on their part.
- Nevertheless, MATIC owners on other networks, like Ethereum or Polygon's zkEVM, as well as those using centralized platforms, will have to handle the shift to POL themselves.
- To assist in this endeavor, Polygon has introduced a specialized migration contract, but it's advisable only for seasoned users.
- In Polygon's evolving plans, the POL token will take on bigger roles. It's crucial for AggLayer, a mechanism aimed at integrating liquidity and state across various chains within the Polygon framework.
POL will be instrumental in functions like block creation, generating zero-knowledge proofs, and engaging in Data Availability Committees as part of the Polygon staking hub, anticipated to debut in 2025.
This shift also reinstates a community treasury, financed by a certain portion of POL emissions. The purpose of this treasury is to foster ecosystem development through grants and initiatives managed by the community.
Boiron highlighted that such a feature couldnāt have existed under the previous MATIC token infrastructure.
Switching to POL is more than just changing a token; it's a strategic maneuver to amplify Polygon's capacities. With it comes more decentralized governance and incentivizes validators across the diverse chains within the Polygon sphere, even those lacking individual native tokens.
As of this shift's effective date, Polygon boasts a market capitalization hovering around $3.8 billion.
On the CoinDesk 20 index, this places Polygon as the 13th-ranking digital asset. Ensuring the success of this token update is key for Polygon's goal to become a top name in Ethereum's scaling domain.
Although thereās no current deadline for those with MATIC on Ethereum or Polygon zkEVM to switch to POL, the Polygon community might propose a cut-off in the future. Exchanges are likely to list the updated POL token, facilitating its acceptance and trading.
Oliver Dale, the Editor-in-Chief at Blockonomi, and the mind behind Kooc Media, a UK-based online media entity, champions Open-Source Software, Blockchain advancements, and an accessible Internet for everyone.
