$MATIC Is the popular currency exchange on Binance redrawing the line now? A full analysis of the MATIC token upgrade: Can POL become the next value dark horse?

Polygon announced two core plans last year.

The first is to upgrade the Polygon PoS chain to the ZkEVM Validum chain to improve scalability and speed up the finality of transactions, while connecting the AggLayer to promote the further development of the ecosystem.

The second is to officially launch the POL token through a 1:1 MATIC-POL token migration. This upgrade is not only a technical advancement, but will also have a profound impact on the token economics of the entire ecosystem, and may bring important opportunities for the future value increase of the POL token.

Starting from September 4, 2024, holders can migrate MATIC to POL tokens at a ratio of 1:1. Centralized exchanges such as Binance and OKX will automatically handle the migration for users. Just pay attention to the relevant announcements, cancel the open orders, and MATIC holders will receive POL tokens.

Some decentralized exchanges and aggregation platforms will migrate through their own interfaces, and users can also do it themselves through the Polygon migration portal or smart contract address.

It is worth noting that this upgrade not only changes the token economics, but also takes into account the future roadmap and value capture.

This upgrade brings several important changes:

Inflation reward restoration: The MATIC inflation reward for Polygon validators ended last year. With the upgrade, 200 million POL tokens will be added to circulation each year for the next 10 years. If 1 POL = $0.5, this is equivalent to $100 million in rewards per year.

Enhanced validator incentive mechanism: In order to maintain network growth and validator enthusiasm, Polygon not only provides standard inflation rewards, but also encourages validators to support other chains. These additional rewards will be obtained through their participation in network activities on different chains.

Technical upgrade and liquidity layer: Polygon introduces the L2 technology stack and a unified liquidity layer (AggLayer) to provide sufficient liquidity for L2. Validators can obtain additional token rewards through staking and earn income from fees from aggregators and other chains.

In summary, the upgrade of MATIC to POL is a good opportunity. As Polygon continues to advance technology deployment and strengthen cooperation with infrastructure such as AggLayer, the demand for staking will further drive the value growth of POL, and the current price is also appropriate.