Updated: September 4, 2024 4:27 AM EDT
After a year of extensive community discussion, Polygon developers have announced their migration. Matic
-7.64%
This change will introduce POL as the new ticker symbol for the native gas and staking token on the Polygon PoS chain. Exchanges are expected to list the upgraded token.
The transition to POL is a key component of Polygon’s development as a ZK chain and integration with AggLayer, with the goal of unifying liquidity and state across multiple chains. POL maintains MATIC’s existing token economics and 10 billion token supply.
The initial exchange rate for MATIC to POL is set at 1:1, with emissions gradually increasing by 2% over 10 years to support growth. “For validators, this emission model ensures continued rewards, making it attractive for new validators to join and participate,” Polygon said.
MATIC holders on Polygon PoS do not need to take any action as the upgrade to POL will happen automatically. However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges will need to actively migrate their tokens to POL via the migration contract.
The upgraded POL token will have expanded functionality, including the ability to produce blocks in the future, create zero-knowledge proofs, and participate in the Data Availability Committee (DAC).
Polygon uses two scaling solutions: a sidechain called Polygon PoS and a zero-knowledge rollup network called Polygon zkEVM.
POL was first proposed as the network’s upgraded native token in July 2023. In July of this year, Polygon officially announced that the MATIC token would be upgraded to POL on September 4th.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, influential and timely information on the cryptocurrency industry. Current financial disclosures are as follows:
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.