- Polygon has sent out a save-the-date – September 4 will mark the official transition from MATIC to the network’s new token standard, POL.
- POL will replace MATIC for all major ecosystem uses, including validating and paying gas fees.
- Those holding MATIC on the Polygon blockchain will find their tokens upgraded automatically, while ERC-20 standard owners will need to utilise a migration contract.
Polygon is gearing itself for a new-look token on September 4th, with the decentralised network confirming plans to transition away from its long-time native cryptocurrency, MATIC. The upgrade proposal was passed by the community after being slated over 12 months ago.
Polygon’s move comes as part of the team’s decision to transform the protocol into an aggregated blockchain – Polygon 2.0. This new vision will focus on harnessing developer talent from across different networks, enhancing blockchain interoperability.
Polygon’s blog post put it best: “a new direction…required an upgraded token.”
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POL to Replace MATIC for Validators
On September 4th, POL will take over all the basic functionalities of the current MATIC token for Polygon users. This includes everyday tasks such as staking, paying gas fees and voting in governance proposals.
Going forward, the Polygon development team are keen to ensure POL remains “future-proof” by implementing further upgrades. Their first focus will likely be on improving AggLayer functionality (a Polygon protocol that combines separate chains into the network into one seamless ecosystem).
Additionally, the hope is that POL can be used to interact with a 2025 staking hub and help holders participate in Data Availability Committees (DACs).
MATIC Tokens on Polygon Will Automatically Upgrade
MATIC owners won’t need to stress about their tokens. Those who currently hold MATIC within the Polygon ecosystem won’t have to do a single thing – the transition will occur automatically. When you go to sleep on September the 3rd, you’ll wake up with an equivalent number of POL tokens in your wallet or dApp.
Those who own the ERC-20 version of MATIC, or alternatively, hold the tokens in a centralised exchange, may have to put in a little effort to complete the transition. Eth versions of MATIC can be upgraded via a “Migration Contract”, while other token standards may require bridging to the Ethereum network before they can be transformed.
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The market didn’t react strongly to the news, with the price of MATIC falling nearly 5% over the past 24 hours, in line with most other major cryptocurrencies.
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