Polygon developers have set September 4 as the date for the conversion of the MATIC utility token into the Polygon Ecosystem Token (POL) at a 1:1 ratio.
SAVE THE DATE: MATIC → POL
After community consensus, the long-awaited upgrade is set for September 4th
• Initial phase: POL replaces MATIC as the native gas and staking token for Polygon PoS
• Subsequent phases: POL will serve a crucial role in the AggLayer
More details🧵 pic.twitter.com/SyxsFAlOeZ
— Polygon Foundation (@0xPolygonFdn) July 18, 2024
The community approved the initiative.
POL will replace MATIC as the primary asset for staking and gas payments.
The current tokenomics, distribution and total supply are expected to remain unchanged, the latter being 10 billion with an annual inflation of 2%.
In subsequent stages, depending on community feedback, POL’s functionality may be expanded, especially within the AggLayer blockchain aggregation layer.
For current MATIC holders on the Polygon PoS network, the transition to POL will occur automatically, without user intervention.
However, for those who own an asset on Ethereum, Polygon zkEVM or various CEX special migration procedures will need to be completed, the project said in a statement.
Developers and stakers who delegated their MATIC to the network of the second largest cryptocurrency by market cap will have their tokens automatically converted to POL, with the option to opt out of the transition at their discretion.
As part of the migration, the team will conduct large-scale updates dapps and infrastructure.
The idea of launching a new coin was first put forward in mid-July as part of the Polygon 2.0 update. The main goal of the initiative is to ensure network scalability without compromising security.
The Polygon team said the coin “will facilitate a broad ecosystem of layer-two solutions based on zero-knowledge proofs.”
POL also paves the way for other aspects of the Polygon 2.0 roadmap to be implemented, including the creation of a separate staking layer, an upgrade of the current PoS mechanism to zkEVM-2, and the development of a common liquidity protocol.
On October 25, Polygon Labs deployed the POL smart contract to the Ethereum mainnet. The token is not currently used for intra-protocol transactions.
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Source: Cryptocurrency
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