- Polygon, a layer-2 scaling solution built on the Ethereum blockchain, has began transitioning from the MATIC token to the highly anticipated POL token
- This transition also marks part of Polygon’s broader “Polygon 2.0 “ roadmap,
The long-awaited Polygon token transfer is here. Polygon, a layer-2 scaling solution built on the Ethereum blockchain will undergo a significant transformation, transitioning its long-lasting MATIC token to the new token called POL. Not only does this transition involve a new name, but it also brings with it substantial improvements to its ecosystem.
Intends to supplant Matic to POL were initially announced in July 2023. This transition also marks part of Polygon’s broader “Polygon 2.0 “ roadmap, a strategic plan that aims at enhancing the network’s capabilities and ensuring its long-term sustainability.
Dubbed the “Value Layer of the Internet,” it highlights the prospects of Polygon’s ecosystem, with POL set to become the native token not only for Polygon’s Proof-of-Stake chain but also for other chains within its ecosystem.
Additionally,
The current community consensus proposes that POL will support broader roles in the Polygon staking hub (to be released in 2025), including block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs).
In the initial phase of the transition, POL will replace MATIC as the native gas and staking token. In doing so, the migration will see to it more flexibility to the network especially in the issuance of new token supply. Additionally, Polygon stated that in the following phases, POl will “serve a crucial role in the AggLayer.” The AggLayer is a system designed to aggregate blockchains built using Polygon’s technology
Detailing the advancements, one significant improvement tagging along the MATIC to POL transition is the introduction of new tokenomics. Polygon announced that POL will have an annual emission rate of 2%, with the supply divided between rewards for validators on the Polygon PoS network and contributions to the community treasury. The aforementioned community treasury will then support various activities within the Polygon ecosystem, including the introduction of grants.
Marc Boiron, CEO of Polygon Labs, emphasized the technical necessity of this upgrade, stating:
The biggest reason why the upgrade was needed from a technical perspective, is that the MATIC upgrade keys were burned very intentionally years ago. Which basically means that we can’t make changes to that token, So one of the things that we wanted was to introduce emissions that way. We could use it for the community, we could use it for growth. It was literally impossible to do that otherwise.
The transition to POL is expected to give the Polygon community more power over the ecosystem’s resources. As mentioned earlier, Contributions to the community treasury will enable the launch of a grants program, providing funding for projects and initiatives that will contribute to the network’s development.
Also, validators will not be left behind as the new emission fees will go to the mentioned parties, ensuring the security and decentralization of the network.
Boiron also highlighted the importance of POL emissions in supporting the decentralization of new chains, stating:
Effectively, if you think of these new chains that pop up, what’s going to happen is that with time, they’re going to want to decentralize. And so instead of just having a centralized sequencer, they’re going to need to incentivize people to actually run a decentralized group or a decentralized prover. And if they don’t have a token, or if they don’t want to launch a token yet, how do they do that? Well, effectively, what this does is that a portion of that POL emissions can actually be used to decentralize their network, and then POL holders will then receive fees from that network.
