Overview of the Upgrade
Polygon, a leading Ethereum scaling solution, has recently implemented a major technical upgrade by transitioning its native token from MATIC to POL. This upgrade, finalized on September 4, is part of Polygon’s broader vision for Polygon 2.0, aimed at enhancing the network’s utility and scalability.
Token Transition Details
The upgrade involves an automatic 1:1 conversion of MATIC tokens to POL. The new POL token will function as the native gas and staking token for the Polygon network.
Introducing the Hyperproductive POL Token
According to Polygon Labs CEO Marc Boiron, POL is a “hyperproductive” token designed to generate fees from multiple sources. Unlike its predecessor, MATIC, which only earned fees from gas and staking, POL can accrue additional fees from various activities. These include:
- Staking to secure data availability
- Decentralizing a sequencer
Polygon 2.0 Vision
This upgrade is a pivotal step towards achieving Polygon 2.0. The initiative includes the development of the Polygon CDK (Composable Development Kit) and AggLayer. The AggLayer aims to:
- Connect various blockchains
- Provide “infinite scalability”
- Unify blockchains, including Layer-1s like Ethereum and Bitcoin
Migration Details
While the migration to POL is in effect, MATIC holders are not required to upgrade their tokens immediately. The transition will be handled automatically for staked MATIC tokens.
Market Impact
Despite the significant technical advancements, the price of MATIC fell by 7.2% to $0.3778 within 24 hours of the upgrade. The token’s market capitalization currently stands at $3.7 billion, with a 24-hour trading volume of $313.75 million.
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