On September 4, 2024, the Polygon network completed a major upgrade that replaced the MATIC token with POL. This is not just a cosmetic change, but a major step in the development of the network, aimed at strengthening its functionality and preparing it for the introduction of new technologies. The transition to POL is part of a long-term development strategy known as Polygon 2.0, which aims to increase the scalability of the network and improve its interoperability with other blockchains.

History and reasons for the transition

The POL token now serves key functions in the Polygon ecosystem. POL serves as the primary token for transaction fees and staking, making it a critical element of network security. Before the upgrade, MATIC performed these functions, but with the introduction of POL, the network has been able to scale better and integrate new technologies such as AggLayer. This technology should improve interoperability between different blockchains and eliminate network fragmentation issues.

POL Development Prospects

Although the POL price has not shown significant growth in the first days after the launch, analysts predict a long-term increase in the token's value. This is due to the improvements that Polygon 2.0 will bring, as well as the increased use of POL within the ecosystem. For example, the token will be actively used for staking, which will attract more validators to the network and ensure its security. In addition, POL will become the main tool for paying transaction fees on the Polygon network, which will increase its demand.

Importance to the community

Polygon is actively investing in the development of its ecosystem, using POL to fund new projects through the community treasury. These funds are aimed at supporting innovation, which will help the network remain competitive and adapt to changes in the market. In the coming years, 100 million POL are planned to be allocated annually to develop projects that will help expand the use of the network and its interaction with other blockchains, including Ethereum.

Conclusion

POL has good long-term growth prospects due to continuous improvements in the Polygon ecosystem and integration with new technology solutions. The network is actively preparing for transaction growth and scaling, which creates additional opportunities for investors and users of the token.