Coinspeaker Polygon Announces Details on MATIC Transition to POL Tokens
Polygon is gearing up for an upcoming transition from its native MATIC tokens to the new Polygon Ecosystem Token (POL) tokens. As per an August 18 announcement, the new update is set to happen on September 4. It aims to assign POL the main token for gas fees and staking functionalities within the scaling solution’s Proof-of-Stake (PoS) network.
Notably, this plan comes under the broader Polygon 2.0 upgrade, which started with the initial launch of three Polygon Improvement Proposals (PIPs).
The transition from MATIC to POL will be a phased rollout that reflects Polygon’s broader ambitions to enhance its network’s efficiency. Initially, POL will replace MATIC to assume responsibilities as the core gas and staking token.
Polygon plans to include POL further into its cutting-edge AggLayer project in the later stages. AggLayer, which is created to optimize Layer 2 solutions, will see POL playing a major role in its operations, marking a new chapter in the network’s evolution.
It is important to note that the testing of the Polygon PoS upgrade from MATIC to POL went live on July 17. The primary goal behind this testnet was to find and solve any issues before the actual mainnet migration.
Migration Details
Polygon’s PoS network users holding MATIC do not need to take any steps for this highly anticipated transition. On the other hand, those with MATIC on Ethereum, Polygon zkEVM, or centralized exchanges might have to follow certain procedures to participate. Interestingly, Ethereum already has a migration contract in place, allowing for a seamless and permissionless upgrade for those who choose to transition.
Notably, Polygon has not explicitly set any deadline for this token migration. However, the community retains the power to declare a deadline anytime, as per the release.
The Polygon 2.0 roadmap plans to introduce a new staking layer designed to enhance Polygon’s Layer 2 (L2) solutions and the upgrade of Polygon PoS to zkRollup technology. Amid this massive plan, Polygon announced two separate partnerships with Fox Corporation and Ronin Network in June to increase the use case of its zero-knowledge (ZK) technology.
MATIC Price Dynamics
As the market digests this news, MATIC has shown a slight upward movement. It is currently trading around $0.418, a 1% increase in the past 24 hours. This price action is accompanied by a surge in trading volume, up by 30% to $144 million.
With a market cap of $4.16 billion, MATIC currently ranks as the 21st biggest crypto by market capitalization, according to CoinMarketCap.
However, it’s important to note that MATIC has not performed as strongly in this bull cycle compared to its explosive growth in the last cycle. The token remains down by over 27% over the past year and is currently trading 85% below its all-time high of $2.92, achieved in December 2021. MATIC holders expect the token to reach $2 by the peak of this ongoing cycle.
Earlier this month, Web3 game GasHero announced that it burnt more than 116,000 MATIC, worth around $50,000, through gas fees on Polygon.next
Polygon Announces Details on MATIC Transition to POL Tokens