Amid a relatively stable day for the overall cryptocurrency market, Polygon MATIC
+10.72%
's POL token spiked higher by more than 15% Friday morning. The move appears to be related to POL being listed on Binance, the world's largest crypto exchange, and marks the unofficial end of the MATIC migration.
In July, Polygon announced the MATIC token would upgrade to POL on Sept. 4 after a year of community-led discussions.
This change makes POL as the new ticker symbol for the native gas and staking token on the Polygon PoS chain. Polygon PoS is an EVM-compatible, proof-of-stake sidechain for Ethereum.
"The transition to POL is a crucial component of the project's development into a ZK chain and its integration with AggLayer, which aims to consolidate liquidity and state across multiple chains," wrote The Block's Vishal Chawla. "POL will maintain MATICâs existing tokenomics and a supply of 10 billion tokens."
RELATED INDICES
The initial exchange ratio from MATIC to POL was established at 1:1, with emissions gradually increasing by 2% over the next 10 years. MATIC holders on the PoS chain were automatically upgraded to POL without any action required. However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges must actively migrate their tokens to POL using a migration contract.
POL was trading higher by 12.7% to $0.42 with a $3 billion market cap, according to The Block's POL price page. Meanwhile, the GMCI 30, which represents a selection of the top 30 cryptocurrencies, was higher by 1.5%.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
