The Polygon network is undergoing a significant upgrade, transitioning from MATIC to a new token called POL. This upgrade is a fully community-driven initiative, reflecting the evolving vision of Polygon as an aggregated blockchain network. In this blog post, we will explore the POL token migration process, the rationale behind the upgrade, and what it means for MATIC holders.

Understanding the POL Token

The proposal for POL, first introduced last year in PIP-17, aimed to enhance Polygon’s utility by upgrading its native token, MATIC. The community's feedback was immense and immediate, showcasing the need for a token that could support an expanded utility for Polygon’s aggregated blockchain network.

POL is designed as a hyperproductive token that can provide valuable services to any chain within the Polygon network, including the AggLayer. This upgrade aligns with Polygon’s vision of becoming an ever-growing network of blockchains, making POL a future-proof token that secures and supports this growth.

The Community Governance Process

The journey of POL began when the ERC-20 contracts went live on Ethereum last October. This marked the initial step towards achieving a community-led vision. Subsequent PIPs and community consensus further refined the concept of POL, setting the stage for the full upgrade.

Key Roles of POL

POL is not just an upgrade but a transformation. It will play essential roles in the upcoming Polygon staking hub, set to launch in 2025. These roles include block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs). This comprehensive utility ensures that POL is more than just a token; it’s a vital component of the Polygon ecosystem.

Immediate Utility on Polygon PoS

Despite its future-oriented features, POL will have immediate utility on the existing Polygon Proof-of-Stake (PoS) network. Starting September 4, 2024, POL will become the native gas and staking token for Polygon PoS, critical for maintaining network security. Validators on Polygon PoS will need to stake POL (upgraded from MATIC) to earn protocol rewards and transaction fees.

What Does This Mean for MATIC Holders?

For MATIC holders on Polygon PoS, the transition will be seamless. On September 4, 2024, all MATIC tokens on the Polygon PoS chain will automatically migrate to POL tokens. Users do not need to take any action. However, they should update RPC settings in their wallets to reflect the token symbol change from “MATIC” to “POL.”

For MATIC holders on Ethereum or Polygon zkEVM, some action may be required. A migration contract on Ethereum will enable MATIC holders to upgrade to POL permissionlessly. Users can also use third-party decentralized exchange (DEX) aggregators like 1inch, Kyber, or CowSwap for this upgrade. For zkEVM users, bridging MATIC tokens to Ethereum and then following the upgrade instructions for Ethereum holders is another option.

Ensuring a Smooth Technical Upgrade

The POL upgrade is a significant undertaking that necessitates robust security measures and extensive testing. To this end, the POL upgrade on the testnet went live on July 17, 2024. This testnet migration serves as a dress rehearsal, allowing users, developers, and infrastructure providers to familiarize themselves with the upgrade processes, ensuring technical validation, and minimizing disruptions during the mainnet upgrade.

Implications for DeFi Protocols and dApps

DeFi protocols and dApps on Polygon PoS will see their liquidity pools upgrade from MATIC to POL on September 4, 2024. Core developers should consider transitioning to a POL price oracle to ensure accurate price feeds and data integration. Additionally, deprecating the use of MATIC and wMATIC on dApp front ends in favor of POL and wPOL is advisable to maintain accuracy regarding the relevant gas token.

Stakers and Delegators

For stakers and delegators of MATIC on Ethereum securing the Polygon PoS network, all staked MATIC will be automatically upgraded to POL on September 4, 2024. If users do not wish their staked MATIC to be upgraded to staked POL, they need to unstake their MATIC on Ethereum before September 1, 2024, keeping in mind the 48-hour withdrawal period.

Conclusion

The transition from MATIC to POL marks a significant milestone for the Polygon community. This upgrade not only enhances the utility of Polygon’s native token but also aligns with the vision of Polygon as a network of aggregated blockchains. By understanding the migration process and the roles of POL, MATIC holders can seamlessly navigate this upgrade and continue to contribute to the growth and security of the Polygon ecosystem.

Stay tuned for more updates as we approach the mainnet migration date, and ensure you are prepared for this exciting transformation!