Polygon, the Layer2 network designed to scale and improve Ethereum infrastructure, has announced a significant upgrade that will transform its native token MATIC into POL.
In an official statement published through their blog, the Polygon developers announced the network's next major update, which will transform the protocol's native token, MATIC, into POL, on September 4.
This transition from MATIC to POL represents a step forward in the evolution of the platform, and reflects Polygon's continued commitment to innovation and improvement of the cryptocurrency ecosystem.
What is POL? The new Polygon token
Before getting into the details of the upgrade from MATIC to POL, it is wise to have a clear idea of what the new token represents for the Polygon network. In this sense, POL represents a significant evolution in the Polygon ecosystem, ushering in a new era of protocol tokens with enhanced capabilities.
POL was designed to replace the MATIC token, such that this token can be positioned as a “hyper-productive” native asset that will allow its holders to not only validate transactions, but also participate in the governance of multiple chains and roles within the ecosystem.
This innovation is part of the Polygon 2.0 update, which introduces a redesigned infrastructure and reinvented protocol architecture, aiming for high scalability without compromising security or user experience. With the integration of zero-knowledge (ZK) technology, Polygon seeks to transform its products and become a complete scaling solution for the Ethereum blockchain.
The vision of POL and Polygon 2.0 is to facilitate the creation and exchange of value freely and globally, similar to how information is exchanged today, thus establishing what is called the "Internet value layer."
The evolution of native tokens through generations
The evolution of native protocol assets reflects continued innovation in the cryptocurrency space. For example, Bitcoin, with its native asset BTC, introduced the concept of decentralized digital assets. However, as a first-generation digital token, it does not offer an active role to its holders beyond the merely commercial and speculative, which is why they are often called unproductive tokens.
On the other hand, there is the example of Ethereum, which took the role of native assets a step forward with ETH, allowing users to participate in the security and operation of the blockchain network through the validation of transactions and smart contracts. This allows holders of these tokens to profit from the role they play in the network, beyond trading and speculation. Consequently, these tokens are called productive tokens.
The third generation of tokens comes from Polygon, with its POL token, which represents a new era of hyper-productive tokens that seek to maximize the participation of holders in a variety of blockchains and roles, thus encouraging greater security and diversification of tasks within the digital ecosystem. This progression not only improves the functionality and value of the tokens but also encourages greater decentralization and resilience in blockchain networks.
Update: From MATIC to POL
As announced on the official Polygon site, the MATIC update to POL will be carried out in phases, starting with the integration of POL as the primary token for gas and staking operations within Polygon's proof-of-stake chain.
For users who own MATIC, this change will be seamless, as no action is required on your part. In fact, existing MATIC tokens on the PoS chain will automatically be converted to POL tokens. This automatic process ensures a smooth transition for users to the new digital asset on the network.
Additionally, those who hold MATIC tokens in staking contracts on the Ethereum blockchain will also see an automatic conversion to POL.
For those using MATIC in more complex applications, such as Polygon's zkEVM suite, centralized exchanges, or directly on the Ethereum blockchain, Polygon has provided detailed instructions to ensure a smooth transition to the new digital asset.
The benefits of the transition to the POL token
The redesign of the POL protocol architecture offers a series of benefits that reinforce the position of the Polygon ecosystem in the world of cryptocurrencies and blockchain technology.
On the one hand, the security of the ecosystem is reinforced by a set of highly decentralized PoS validators, which provide a solid foundation for the protection of Polygon chains. This decentralization not only improves security, but also contributes to the resilience and credibility of the system.
Another crucial aspect for the Polygon ecosystem is scalability, and POL is designed to handle enormous growth without compromising security, which is essential for widespread adoption of the technology.
Therefore, the support that POL can provide is essential for the network, especially considering that both Polygon and the blockchain industry are still developing. In this case, POL offers a sustainable mechanism to support this growth and evolution.
The development and governance of Polygon Network
Also a key issue for the adoption of any technology is the experience provided to the user and developer, and POL addresses this by removing the friction associated with the use of native tokens, facilitating a more seamless experience.
Last, but not least, is community ownership and governance rights that are central aspects of Polygon's decentralization philosophy, ensuring that the community has a voice in the future of the platform. Together, these elements position POL as a vital component to the future of Polygon and its ecosystem.
In short, this upgrade from MATIC to POL is a testament to the dynamic nature of cryptocurrencies and blockchain technology, where continuous improvements and adaptability are crucial for progress and mass adoption. With this update, Polygon not only strengthens its position as a key player in the cryptocurrency space, but also offers its users a more efficient and optimized experience.
Main image from Polygon Labs
