Polygon, the Ethereum layer-2 scaling solution, has announced the upgrade of its native cryptocurrency from MATIC to POL.
Polygon, the Ethereum layer-2 scaling solution, has announced the upgrade of its native cryptocurrency from MATIC to POL.
This technical upgrade, finalized on Sept 4, aims to improve the token's utility and pave the way for Polygon 2.0.
The new POL token will now serve as the network's primary gas and staking token, replacing the previously used MATIC.
According to the announcement, this migration was the result of extensive community discussions and consensus, and is part of Polygon's broader plans for its Polygon 2.0 initiative.
"This upgrade is a crucial step in enhancing the functionality of our native token and empowering our community to play a more active role in the network's growth," said Marc Boiron, CEO of Polygon Labs.
Boiron highlighted two key reasons behind the token upgrade. First, the goal is to make POL a "hyperproductive" token, capable of earning fees from a wider range of activities beyond just gas and staking.
This includes fees generated from staking to secure data availability or decentralizing a sequencer.
"The POL token represents an evolution in token utility, going beyond the traditional gas fee-earning model of Ether," Boiron explained.
"This expanded fee-generation ability will create new opportunities for our community to engage with and benefit from the Polygon ecosystem."
The migration process is designed to be seamless for existing MATIC holders, as all staked MATIC will be automatically converted into POL without any additional action required. The successful execution of the testnet upgrade on July 17th has paved the way for the mainnet launch.
Furthermore, the new POL token will be integrated into Polygon's AggLayer, a cross-chain interoperability protocol aimed at connecting siloed blockchain networks.
This integration is a key component of Polygon's Polygon 2.0 vision, which aims to deliver "infinite scalability" and unify various blockchain ecosystems.
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