Polygon, the leading Ethereum Layer-2 scaling solution, migrated its native $MATIC token to a new token, $POL, according to a Sept. 4 CoinTelegraph report.
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. The $POL token will serve several functions beyond gas fees and staking.
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 to $POL using a migration contract provided by Polygon. The process is straightforward but recommended for experienced users.
Implications for Token Holders
With the transition to $POL, Polygon introduces new tokenomics designed to support the network’s long-term growth. One key change is a new annual emission rate of 2%, split between validator rewards and a community treasury. In addition, $POL will play a role in Polygon’s broader technology stack, including block production and zero-knowledge proof generation.
The migration to $POL is a significant step in Polygon's strategy to integrate advanced zero-knowledge technologies and enhance its infrastructure, reinforcing its position as a leader in Layer-2 solutions.
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