September 4th will mark a significant milestone in the history of Polygon Network, as the Layer2 blockchain will carry out the long-awaited migration of its MATIC token to the new POL token.
Developers at Polygon Labs, which is behind the development of Polygon Network, reminded the crypto community that the upgrade from MATIC to POL is about to happen.
This is a crucial transformation, which not only represents a name change, but also involves a series of technical and economic improvements that seek to strengthen the Polygon ecosystem and its position in the competitive world of cryptocurrencies and blockchain networks.
Polygon reinvents itself with the migration from MATIC to POL
The decision to migrate from its native token MATIC to POL falls within the Polygon 2.0 roadmap, which seeks to transform the network into an interoperable multi-chain ecosystem.
Marc Boiron, CEO of Polygon Labs, revealed in an interview with CoinDesk that the need to migrate its native token was a technical issue, as MATIC's upgrade keys were burned years ago, limiting the ability to make changes to the token. Therefore, with the introduction of POL, the developers are looking to open the door to new emissions and a more flexible economic model that can benefit the community and blockchain validators.
In the initial phase of the migration, POL will replace MATIC as the native gas and staking token on the Polygon PoS network. This means that all transactions made on this network will use POL, contributing to the security and efficient operation of this blockchain ecosystem.
On the other hand, Polygon developers stressed that the token migration will be carried out automatically for most users. This is in order to facilitate the transition and minimize complications for holders.
“To ensure a smooth technical upgrade, there are currently no deadlines for MATIC holders on Ethereum and Polygon zkEVM to upgrade to POL. However, the community will have the power to set a deadline in the future.”, he highlighted Polygon Labs.
POL and its role in the Polygon ecosystem and the AggLayer
One of the most exciting features of the new POL token is its role in the AggLayer, a system aimed at aggregating affiliate chains built on Polygon technology. As the Polygon ecosystem expands, POL will become a crucial component that will allow the network to operate in a more efficient and decentralized manner.
The AggLayer is designed to facilitate interoperability between different blockchains, which is essential for the growth of a multi-chain ecosystem. In this context, POL will not only serve as a gas token, but will also become a hyperproductive asset which will allow validators to participate in block generation and the creation of zero-knowledge proofs, increasing the security and decentralization of the network.
“It has become obvious that well-designed native tokens are a transformative tool for the development and growth of open source protocols”, the protocol stressed.
The Polygon community has also proposed that POL play a broader role in the future, including its use in data availability committees (DACs) and in a staking hub which will be released in 2025.
Changes in the tokenomics of the L2 network
One of the most significant changes accompanying the migration to POL is the new tokenomics structure. POL will have an annual issuance rate of 2%, allowing for a more equitable distribution of tokens between validators and the community treasury. This strategy is designed to foster ecosystem growth and provide incentives for validators and users to actively participate in the network.
Furthermore, with the introduction of POL, the developers propose the creation of the Community Treasury, which will serve as a support vehicle to strengthen the community, increasing its transparency, decentralization and participation.
In short, POL is a third-generation token designed to unlock multiple utilities and incentives in the Polygon blockchain ecosystem.
