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MATIC to POL Token Migration in the Polygon Ecosystem

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by Giorgi Kostiuk

2 years ago


  1. The Migration Process
  2. Polygon's AggLayer Vision
  3. Introducing the POL Token

  4. Polygon, an Ethereum scaling solution, is preparing for a significant shift in its ecosystem. On September 4, 2024, the MATIC token will officially migrate to POL, a new token designed to enhance the network’s functionality and support its ambitious AggLayer project.

    The Migration Process

    Polygon has outlined the migration of MATIC to POL in a multi-phase rollout. This change is pivotal as POL will replace MATIC as the native gas and staking token for the Polygon Proof-of-Stake (PoS) network. The new token will reportedly play a significant role in Polygon’s AggLayer, which is central to its scaling solutions. This move is expected to enhance the network's functionality and facilitate future developments within Polygon’s expanding ecosystem.

    Polygon's AggLayer Vision

    The AggLayer is defined as a horizontally scalable multichain network that enables shared liquidity and state across connected chains. It will host several ZK-powered Layer 1 (L1) and Layer 2 (L2) blockchains, secured by a common validator set. Using this setup, cross-chain transactions will be near-instant, and a single cross-chain bridge will connect each blockchain to Ethereum, eliminating the need for each blockchain to maintain its own bridge.

    Introducing the POL Token

    The POL token will replace MATIC on a 1:1 basis starting September 4. According to the Polygon team, POL is set to improve upon MATIC in several ways: * **Shared Security**: POL validators will validate multiple chains within the AggLayer, enhancing overall security. * **Increased Incentives**: Validators will receive additional rewards and roles, boosting participation and engagement. * **Validator Roles**: POL introduces new roles for validators, including generating ZK proofs and participating in data availability committees. * **Community Treasury**: POL will support a Community Treasury funded by continuous POL emissions. This treasury will finance protocol development, research, grants, and adoption incentives. * **Governance**: POL holders will have a say in managing the Community Treasury.

    The POL token will have an initial supply of 10 billion tokens, matching the total supply of MATIC. It will feature an annual emission rate of 1%, allocated for staking rewards and community treasury funding. An additional 1% annual compounding emission will be dedicated to the Community Treasury. For MATIC holders on the Polygon PoS chain, the migration to POL will be automatic, with no required action. However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges (CEXs) will need to take steps to upgrade their MATIC to POL.

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