Polygon, the leading Ethereum Layer-2 scaling solution, has completed its migration of the native MATIC token to a new token, POL. This transition is part of Polygon's plan to improve its infrastructure and integrate it with zero-knowledge (ZK) technology.
Why the Migration to POL
The upgrade from MATIC to POL 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. In the future, POL will serve several functions beyond gas fees and staking, consolidating liquidity and state across the network, making it a critical component of Polygon's growth.
The Transition Process
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. However, if you hold MATIC on the Ethereum network or on Polygon’s zkEVM layer 2, you will need to manually migrate your tokens using a migration contract provided by Polygon. This process is straightforward but recommended for experienced users to avoid any potential issues. Although there is no immediate deadline, it is advisable to act sooner rather than later to avoid any complications.
Implications for Token Holders
With the transition to POL, Polygon introduces new tokenomics designed to support the network’s long-term growth. One of the key changes is a new annual emission rate of 2%, split between validator rewards and a community treasury. According to Polygon Labs CEO Marc Boiron, the treasury is intended to be a self-sustaining ecosystem fund, supporting various activities within the Polygon network. POL will also play a role in Polygon’s broader technology stack, including block production, zero-knowledge proof generation, and participation in Data Availability Committees (DACs), which are critical for maintaining and expanding Polygon’s capabilities as a leading Layer-2 solution.
The migration from MATIC to POL is complete, aimed at strengthening Polygon’s capabilities and growth. The new POL token will play a significant role in the Polygon ecosystem, supporting its long-term development and integration of advanced technologies.
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