Polygon Labs, the startup behind the layer-2 network Polygon has announced it will initiate a technical upgrade process to transition MATIC to its new token POL. This upgrade is slated to commence on September 4th.
The Polygon POL Use Cases
This major protocol upgrade comes as a fulfillment of the initially proposed network revamping promised in July 2023. In its Polygon 2.0 roadmap laid out last year, the firm promised its community that it would make POL the main token on all the network. Â
SAVE THE DATE: MATIC → POL
After community consensus, the long-awaited upgrade is set for September 4th
• Initial phase: POL replaces MATIC as the native gas and staking token for Polygon PoS
• Subsequent phases: POL will serve a crucial role in the AggLayer
More details🧵 pic.twitter.com/SyxsFAlOeZ
— Polygon Foundation (@0xPolygonFdn) July 18, 2024
In its update, Polygon Labs noted that POL is projected to uphold MATIC’s current tokenomics, distribution, and overall supply. It will be used as the main token for gas fees and staking within the network in the early stage. In addition, it is more likely that within the AggLayer, POL’s capabilities might increase, however, it is dependent on the community’s feedback.
Furthermore, the innovative upgrade will go live on September 4th, but before then, a testnet was implemented on July 17 to identify any potential risks.Â
Polygon’s Big Moves in the Crypto Space
As per the Polygon team, traders holding MATIC on the Polygon PoS chain will not need to take any action for this upgrade. Their tokens will automatically convert to POL. However, for individuals using MATIC on Polygon’s zkEVM rollup (one of its scaling solutions), centralized exchange, or on the Ethereum blockchain, they will need to follow specific steps published on the firm’s website. This news comes recently after the firm allocated over 1 billion MATIC to builders in its community.
Lately, the protocol has been making significant strides in its ecosystem and in the crypto industry at large. This protocol upgrade is one of the many developments pre-scheduled in the Polygon 2.0 roadmap. Recently, the firm kickstarted a new era with community-centered governance, a move to empower both users and builders to have a significant influence on the core development of the Polygon technology.
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