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 12, 2024

Bitcoin Decouples from Gold as Investors Turn Risk-Averse

AAVE Gains Momentum While Analysts Urge Caution

Weekly Article Recap: 9/02-9/06

Sonic Blockchain Targets $11T Unsecured Lending Market With Credit Scores for Digital Wallets

Moderna Slashes R&D Budget, Stock Plummets Amid Profitability Concerns

Standard Chartered Enters UAE Crypto Market with Custody Services for Bitcoin and Ethereum

Join our free newsletter for daily crypto updates!