Polygon, a Layer 2 blockchain, will transition from using its MATIC token to a new POL token as part of its Polygon 2.0 upgrade.
Polygon will upgrade its mainnet on September 4, 2024, after the community approved the proposal. This upgrade will replace the current MATIC token with a new POL token and bring in new smart contracts.
Polygon’s Transition to POL Token and Upcoming Upgrades
Polygon Labs announced in a July 18 blog post that, following PIP-42, Polygon’s Proof of Stake (PoS) validators will need to stake the new POL token to earn rewards and transaction fees. Starting September 4, POL will replace MATIC as the native gas and staking token for Polygon’s PoS chain. This change marks a significant step in Polygon’s roadmap, aligning with the broader goals of the “Polygon 2.0” plan introduced last year.
Source: X
The migration to POL will involve updates to various DeFi protocols, dApps, and infrastructure to support the new token. Polygon currently operates with two scaling solutions: the Polygon PoS sidechain and the Polygon zkEVM zero-knowledge rollup network.
The Polygon 2.0 architecture aims to improve the network’s security, efficiency, and interoperability by unifying liquidity and enhancing connections between multiple ZK-Rollup chains. The AggLayer is expected to link Polygon 2.0 chains and handle ZK-based security proofs back on Ethereum for added security.
Polygon Labs highlighted that POL is designed as a versatile token that can offer valuable services across the Polygon network, including within the AggLayer. In the long term, community consensus suggests that POL will play a broader role in the Polygon staking hub, set to launch in 2025. These roles may include block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs).
Seamless Transition to POL Token for MATIC Holders
For holders of MATIC on the Polygon PoS chain, the transition to the new POL token will be automatic and seamless. MATIC tokens will be converted to POL without requiring any action from users, ensuring they can continue using the network without interruption.
However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges (CEXes) may need to take some action. They can upgrade their MATIC to POL using a migration contract available on Ethereum, which allows for permissionless upgrades at their convenience.
The POL upgrade was initially tested on the testnet starting July 17, 2024. This “dress rehearsal” was crucial for identifying and resolving potential issues, giving users and developers a chance to adapt to the new system before the mainnet migration.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Â
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
