Polygon Labs has recently announced an important technical upgrade for the Ethereum Layer 2 blockchain, Polygon. The upgrade will involve transitioning from the current token, MATIC, to a new token called POL, and is scheduled to go live on September 4, 2024.
This transition from MATIC to POL was first proposed in July of last year and was approved by the community governance through PIP-17 in September. The main idea behind this upgrade is to introduce a new token that will be used for gas fees and staking purposes. This move follows the implementation of the POL ERC-20 contract back in October 2023.
Polygon Labs officially announced the upgrade to POL on Thursday, stating that the initial phase will involve replacing MATIC with POL. As the upgrade progresses through different phases, POL will take on more network functionalities, including in the AggLayer.
The AggLayer is a decentralized protocol with a common bridge and ZK-powered mechanism that aims to address issues of blockchain fragmentation by connecting sovereign chains and enabling shared liquidity.
Polygon Labs emphasized that even as the aggregated Polygon network evolves, POL will have immediate utility on the widely used Polygon Proof-of-Stake (PoS) network. POL will serve as the native gas and staking token for the PoS network, playing a crucial role in ensuring the security of the Polygon network.
For current MATIC holders on the Polygon PoS chain, Polygon Labs assures that the transition from MATIC to POL will be automatic, requiring no action on their part. However, holders with MATIC tokens on other chains or platforms, such as Ethereum, Polygon zkEVM, or centralized exchanges, may need to take certain actions during the upgrade.
When the upgrade date arrives, those looking to migrate their MATIC tokens to POL will need to utilize a migration contract. This ensures a smooth and seamless transition from MATIC to POL, maintaining the integrity and security of the tokens throughout the process.
Overall, the upgrade from MATIC to POL signifies an important milestone in the evolution of the Polygon network, bringing new functionalities and capabilities to users and further enhancing the overall ecosystem. With this transition, Polygon continues to solidify its position as a leading blockchain platform, offering innovative solutions and technologies to its growing community of users and developers.