Polygon to Replace MATIC with POL Token in September

2024/07/18 11:40

Polygon, the Ethereum layer-2 network, will replace its native MATIC token with the POL token on September 4, according to a statement shared on July 18.

Transition Details

In the first phase, POL will become the native gas and staking token for the Polygon proof-of-stake (PoS) chain.

The Polygon team assures users that MATIC holders on the Polygon PoS chain do not need to take any action; their tokens will automatically convert to POL. MATIC tokens on this chain account for 14% of the total supply.

MATIC tokens in Ethereum staking contracts, representing 37% of the supply, will also convert to POL automatically.

Migration Process

Polygon’s blog post outlines steps for MATIC holders using Polygon’s zkEVM rollup, centralized exchanges, or the Ethereum blockchain.

There are no immediate deadlines for these holders to upgrade to POL, but the community may set a future deadline.

Tom Wan, a research strategist at 21.co, anticipates these processes will expedite the token migration to over 50%. Dune Analytics data currently shows the migration progress at 0.1%.

Testnet Launch

The POL upgrade testnet launched on July 17, allowing users and developers to familiarize themselves with the upgrade before the mainnet migration.

POL Token Utility

Polygon describes POL as a hyperproductive token providing valuable services to any chain within the Polygon network, including the AggLayer.

The community expects POL to play a role in the Polygon staking hub, set for release in 2025. This includes block generation, zero-knowledge proof generation, and Data Availability Committees (DACs) participation.

Polygon Foundation's Vision

The Polygon Foundation states that POL aims to provide security for Polygon as an aggregated blockchain network, unifying liquidity and shared state across multiple chains. This evolution supports Polygon's vision as a leading aggregated blockchain network.

The transition from MATIC to POL marks a significant step in Polygon’s evolution, aiming to bolster its network security and unify liquidity across multiple chains while preparing for future developments in the staking hub and other blockchain services.