For over a week now, Polygon (MATIC) has seen a technical upgrade that involved the transition of MATIC to the Polygon Ecosystem Token (POL). Specifically, the MATIC tokens held on the Polygon network were upgraded 1:1 to POL. This leaves the Ethereum-based MATIC with the option of manually interacting with the migration contract to effect a POL upgrade.
MATIC to POL Technical UpgradeÂ
For the last few months, the Layer-2 network has consistently reminded its community members of the technical update, including its scheduled date (September 4). According to prior information about the migration, POL is projected to uphold MATIC’s current tokenomics, distribution, and overall supply. However, it will be utilized as the main token for gas fees and staking within the network in the early stage.Â
In addition, it is more likely the focus token within the AggLayer.
With this migration, Polygon aims to unify the Web3 ecosystem by leveraging the aggregation layer, widely known as AggLayer. Noteworthy, the AggLayer is designed to function like a cross-chain interoperability program, but it differs because it won’t be ecosystem-specific.
The focus is connecting all Layer-1 and Layer-2, bringing them together to unify all blockchains. The technical upgrade and migration were crucial to the Polygon 2.0 implementation. Overall, Polygon 2.0 is a new era with community-centered governance. It empowers both users and builders to significantly influence the core development of the Polygon technology.
Polygon Functionalities and Ecosystem TrendÂ
In the long run, the broader aim is to enhance security and scalability while bringing zero-knowledge-proof aggregation from the connected chains. A privacy boost equally follows. Noteworthy, POL’s capabilities are likely to increase within the AggLayer, although this is highly dependent on the community’s feedback.Â
Furthermore, Polygon’s AggLayer will eliminate the need for third-party protocols for cross-chain interoperability issues, particularly for L1.Â
This will help reduce vulnerabilities. Prior to the MATIC-POL migration, the daily active addresses metric trended downward. Also, network growth decreased in August compared to July. On September 3, just a day before the technical upgrade, dormant token circulation spiked dramatically. This shows the different preparation for what is ahead.
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