Polygon to Replace MATIC with POL Token This September

By: Eva Baxter

Ethereum layer-2 network Polygon has announced an upgrade from its native MATIC token to the innovative POL token, set to commence on September 4, 2023. This upgrade is part of Polygon's planned revamp outlined in the ‘Polygon 2.0’ roadmap laid out last year.

In the first phase of this upgrade, the new POL token will replace MATIC as the native gas and staking token for the Polygon proof-of-stake (PoS) chain. Current holders of MATIC on the Polygon PoS chain, which account for 14% of its total supply, do not need to take any action, as their tokens will be automatically converted to POL.

Additionally, MATIC tokens in staking contracts on Ethereum, representing 37% of its supply, will also convert to POL automatically. Details have been provided for users with MATIC on Polygon's zkEVM rollup, centralized exchanges, or the Ethereum blockchain, although no immediate deadlines are set for these users to upgrade to POL. However, the community will have the authority to establish a deadline in the future.

Tom Wan, a research strategist at 21.co, noted that these measures are expected to expedite the token migration process, which is currently at just 0.1%, according to Dune analytics. To facilitate the transition, a POL upgrade testnet was launched on July 17, allowing users and developers to familiarize themselves with the new token ahead of the mainnet migration.

Polygon has described POL as a hyperproductive token designed to deliver valuable services across any chain within the Polygon network, including the AggLayer. It is expected to play a significant role in the upcoming Polygon staking hub, set for release in 2025, encompassing block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs).

The Polygon Foundation stated, “POL aims to provide security for Polygon as an aggregated blockchain network, unifying liquidity and shared state across multiple chains. This evolution supports the Polygon vision as a leading aggregated blockchain network.”