1. Reasons for the Migration to $POL
2. The Transition Process
3. Implications for Token Holders

Polygon, the leading Ethereum Layer-2 scaling solution, announced the migration of its $MATIC token to the new $POL token. This move aims to enhance infrastructure and integrate with Zero-Knowledge (ZK) technology.

Reasons for the Migration to $POL

The migration from $MATIC to $POL is crucial for Polygon's plans to evolve into a zero-knowledge Ethereum Virtual Machine (zkEVM) system. The new $POL token will be used across multiple interoperable blockchains within the Polygon ecosystem. $POL will serve various functions, including gas fees and staking. Validators who stake $POL will not only secure the Polygon Proof-of-Stake chain but also have opportunities to earn rewards by staking on other chains within the Polygon ecosystem.

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 one-to-one basis. 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. Although there is no immediate deadline for the transition, it is advisable to act sooner rather than later.

Implications for Token Holders

With the transition to $POL, new tokenomics are introduced to support the network's long-term growth. The key change is a new annual emission rate of 2%, split between validator rewards and a community treasury. The treasury will serve as a self-sustaining ecosystem fund supporting various activities within the Polygon network. $POL will also be used in block production, zero-knowledge proof generation, and participation in Data Availability Committees (DACs), which are critical for maintaining and expanding Polygon's capabilities.

The migration to the new $POL token is an important step for strengthening Polygon's infrastructure and its ongoing development. Token holders are advised to keep track of changes and perform necessary actions for the transition in a timely manner.