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On September 4, 2024, Polygon is set to introduce its new native token, POL, marking a significant shift from the existing MATIC token. This upgrade is part of Polygon's broader strategy to evolve from a single proof-of-stake (PoS) network into an expansive ecosystem of blockchains powered by zero-knowledge (ZK) technology. This article breaks down everything you need to know about this MATIC to POL migration and what it means for the future of Polygon.
Polygon's Ambitious Evolution: The AggLayer
Polygon is widely recognized as a fast and cost-effective Ethereum (ETH) sidechain, but its journey began in 2017 with the launch of the Matic Network by Jaynti Kanani and Sandeep Nailwal. After rebranding to Polygon in 2021, the platform positioned itself as a leading Ethereum scaling solution. Now, Polygon is poised to take a giant leap forward with the introduction of the AggLayer, a scalable multichain network designed to unify and secure numerous ZK-powered blockchains.
The AggLayer will allow seamless cross-chain transactions and connect directly to Ethereum L1 via a single bridge, simplifying the ecosystem. Developers will benefit from tools like the Polygon Chain Development Kit (CDK) and zkEVM prover kit, enabling easy creation and integration of new blockchains within the AggLayer.
The New POL Token: What To Know?
The POL token, set to replace MATIC on a 1:1 basis starting September 4, 2024, will serve as the new gas fee payment and staking token on the Polygon PoS blockchain. Polygon describes POL as a "third generation" crypto token, expanding the utility and enhancing validator incentives.
Key improvements include:
- Shared Security: POL validators can secure multiple chains within the AggLayer.
- Increased Incentives: Validators can take on additional roles, earning rewards across various Polygon chains.
- Governance: POL holders will have governance rights over the Community Treasury, funding development and research initiatives.
How to Migrate from MATIC to POL
For MATIC holders on the Polygon PoS chain, no action is required—your tokens will automatically convert to POL on September 4, 2024. However, those holding MATIC on Ethereum or Polygon zkEVM must use a migration contract to exchange their tokens. Some centralized exchanges will handle this conversion automatically, but it's wise to verify this with your exchange. For the Full Migration Guide, you check the one on the Polygon Official Website.
The launch of the POL token signifies the beginning of a new era for Polygon, as it seeks to address blockchain fragmentation and enhance user experience within the crypto space. By embracing the AggLayer vision, Polygon is positioning itself as a critical player in the future of blockchain technology.