Polygon has recently carried out a significant technical upgrade, transforming its MATIC token into the new POL token. The upgrade aims to enhance network performance and set the stage for the introduction of Polygon 2.0.
Token Upgrade
Polygon's (MATIC) token was upgraded to the new POL token on a 1:1 basis, becoming the network’s native gas and staking token as of September 4. The upgrade aims to better enable the community to participate in the network’s growth, according to Marc Boiron, CEO of Polygon Labs.
Hyperproductive Token
The second key reason for the technical upgrade was to transition POL into a hyperproductive token. According to Marc Boiron, POL will now earn fees from various actions, including securing data availability and decentralizing a sequencer, not just gas transactions and staking. This marks the next evolution after Ether (ETH), which only earns fees from gas transactions.
MATIC to POL Migration
While the migration was finalized on September 4, MATIC holders have no hard deadline for upgrading their tokens. All staked MATIC will be automatically converted into POL. The new POL token will also be embedded in Polygon's AggLayer, aimed at connecting siloed blockchains. This technical upgrade is a crucial part of the vision of Polygon 2.0, which aims to provide 'infinite scalability' to unify all blockchains, including Layer-1s like Ethereum and Bitcoin.
The upgrade from MATIC to POL represents a significant step in Polygon's development, providing a powerful tool to enhance network productivity and prepare for future improvements under Polygon 2.0.
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