Polygon’s Major Token Migration Begins
Polygon, the Ethereum-based Layer-2 powerhouse, is set to initiate its much-anticipated migration from MATIC to POL tokens within hours. This upgrade is a key step in Polygon’s evolution, aiming to enhance token flexibility and bolster the network’s functions as part of its broader “Polygon 2.0” roadmap.
Auto-Conversion for MATIC Holders on Polygon PoS
For those holding MATIC on the Polygon Proof of Stake (PoS) network, the migration will be seamless, with tokens automatically converting to POL. However, users holding MATIC on Ethereum or Polygon’s zkEVM layer-2 network will need to manually migrate their tokens. This can be done via the Polygon Portal Interface or by bridging to Ethereum.
POL: The Core of Polygon 2.0
The newly introduced POL token will become the backbone of Polygon’s ecosystem, serving as the native gas and staking token across the network. Polygon officials describe POL as a “hyperproductive token,” capable of providing essential services to any chain within the Polygon network, including the AggLayer—an integral component of Polygon 2.0 that unifies various blockchain platforms using Polygon’s technology.
Tokenomics Overhaul and Future Functions
As part of the shift, POL will introduce a new emission rate of 2% annually. This will reward validators on the Polygon PoS chain and help replenish the community treasury, ensuring the network’s sustainability and growth. Additionally, POL is slated to support crucial functions within Polygon’s staking hub, expected to launch in 2025. These include block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs).
Impact on MATIC Holders and Market Reactions
With a market capitalization of $3.6 billion and ranking as the 28th largest crypto asset, MATIC’s migration to POL is a significant event for the crypto community. However, market reactions have been mixed, with MATIC experiencing a price dip ahead of the migration. Despite this, the long-term outlook for POL within the Polygon ecosystem remains optimistic, given its expanded role and functionality.
No Immediate Deadline for Migration
Currently, there’s no set deadline for MATIC holders on Ethereum or Polygon’s zkEVM to migrate their tokens to POL. However, Polygon has hinted that a deadline may be imposed in the future, urging users to stay informed and act accordingly.
