Ethereum

Token

Polygon

Polygon, the leading Ethereum Layer-2 scaling solution, migrated its native $MATIC token to a new token, $POL, according to a Sept. 4&nbsp;CoinTelegraph report.
Now, $POL will&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/introducing-polygon-pol-polygon-proposes-technical-upgrade-for-matic-token" rel="noopener noreferrer nofollow">serve</a> as the network’s native gas and staking token. This transition is part of Polygon's plan to advance its infrastructure and integrate it with zero-knowledge (ZK) technology.
<h2 dir="ltr" id="span-span-why-the-migration-to-pol-span-span">Why the Migration to $POL?</h2>
The upgrade from&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/polygon-s-matic-to-pol-token-migration-on-september-4-everything-you-need-to-know" rel="noopener noreferrer nofollow">$MATIC to $POL</a> is crucial for Polygon’s ambitious plans to evolve into a zero-knowledge Ethereum Virtual Machine (zkEVM) system under its “Polygon 2.0” roadmap. POL will eventually be used across multiple interoperable blockchains within the Polygon ecosystem.
&nbsp;
Polygon’s roadmap envisions $POL as a versatile token that will serve several functions beyond gas fees and staking.&nbsp;
&nbsp;
Validators who stake $POL will not only secure the Polygon Proof-of-Stake (PoS) chain but also have the opportunity to earn rewards by staking on other chains in the Polygon ecosystem, a concept known as the “AggLayer.” This feature is designed to consolidate liquidity and state across the network, making $POL a critical component of Polygon’s future growth.
<h2 dir="ltr" id="span-span-the-transition-process-span-span">The Transition Process</h2>
For most $MATIC holders, the transition to $POL will be seamless. If you hold $MATIC on the Polygon PoS chain or centralized exchanges, your tokens will automatically convert to $POL on a 1:1 basis.&nbsp;
&nbsp;
However, if you hold $MATIC on the Ethereum network or on Polygon’s zkEVM layer 2, you will need to manually migrate your tokens to $POL. This can be done using a migration contract provided by Polygon. The process is straightforward but is recommended for experienced users to avoid any potential issues.
&nbsp;
Despite Polygon's assurances that there is no immediate deadline for completion, it is advisable to act sooner rather than later to avoid any complications during the transition.
<h2 dir="ltr" id="span-span-implications-for-token-holders-span-span">Implications for Token Holders</h2>
With the transition to $POL, Polygon introduces new tokenomics that are designed to support the network’s long-term growth. One of the key changes is a new annual emission rate of 2%. This emission rate is split between validator rewards and a community treasury, as Polygon Labs CEO, Marc Boiron, told&nbsp;CoinTelegraph.
&nbsp;
The treasury is intended to be a self-sustaining ecosystem fund, supporting various activities within the Polygon network.
&nbsp;
$POL will also play a role in Polygon’s broader technology stack. It will be used in block production, zero-knowledge proof generation, and participation in Data Availability Committees (DACs). These functionalities are critical for maintaining and expanding Polygon’s capabilities as a leading Layer-2 solution.

Polygon Upgrades $MATIC Token to $POL: What It Means for the Network and Holders

Table of Contents

BSCN

Other articles published on Sep 4, 2024

Trump’s crypto gambit in Bitcoin, NFTs and DeFi intensifies ahead of election

Harga BTC Ngeri-ngeri Sedap, Analis: Waspadai US$51 Ribu

The CFTC, the US’s Most Authorized Commodity Authority, Organized a Cryptocurrency Operation – He...

BNB Chain Launches Cross-Chain Bridge with Celer, deBridge, and Stargate

OpenAI Japan’s CEO reveals upcoming GPT-Next model to be 100 times more powerful

Truflation Launches Hedge Index With Arbitrum Grant to Monitor RWAs

Join our free newsletter for daily crypto updates!