MATIC Becomes POL
On September 4, Polygon (POL), the Ethereum (ETH) scaling network, officially transitioned from the well-known MATIC token to a new native token called POL. According to the announcement, the POL token will replace MATIC as the native gas and staking token on Polygon’s main proof-of-stake chain. This move is a crucial part of Polygon’s larger 2.0 roadmap, aiming to build a more efficient and scalable blockchain network.
For MATIC holders, this migration raises several questions:
- What does this mean for the future of their holdings?
- How will it impact Polygon’s overall performance?
- What can we expect as the network continues to evolve?
Let’s dive deeper to understand what POL is, why the upgrade happened, and what it means for the future of Polygon and its users.
Understanding the Migration
The migration from MATIC to POL is a community-driven upgrade aimed at reshaping Polygon’s future. POL is being introduced as the Polygon ecosystem evolves into an “aggregated network” through a new technology layer known as the AggLayer. This upgrade is part of Polygon’s vision to unify liquidity and information across various chains within its ecosystem, helping it grow into a more powerful and interconnected blockchain network.
So, what exactly is POL? In simple terms, it’s a new utility token designed to do more than just replace MATIC. While it will still be used for basic functions like gas fees and staking on the Polygon network, its future potential is much broader.
POL is what Polygon calls a “hyperproductive” token, meaning it’s set up to take on multiple roles across the entire Polygon ecosystem. For example, it could help secure not just one chain but an entire network of blockchains as Polygon shifts towards advanced technologies like zero-knowledge rollups.
Initially, POL will function just like MATIC did — powering transactions on Polygon’s PoS network. Validators who secure the network and users who make transactions will start using POL in place of MATIC. This transition will be smooth thanks to backward compatibility. This means that apps, validators, and users won’t experience any disruptions during the upgrade. Everything will work as it always has, but with the added benefits that POL brings.
What’s New with POL?
POL’s future utility will be shaped by the community. Polygon’s roadmap envisions POL playing a central role in the network’s staking hub, expected to launch in 2025. This could expand the use of POL far beyond just staking and gas fees, possibly giving it more influence in the governance and security of the broader aggregated network.
One of the key changes with POL lies in its tokenomics, or how the supply of tokens is managed. Over the next 10 years, POL will have a 2% annual emission rate, meaning new POL tokens will be created to support the network. Half of these tokens will go to validators as rewards for securing the network, while the other half will go to a community treasury. This treasury will fund development projects within the Polygon ecosystem, supporting builders and innovators.
Smooth Transition or Challenges Ahead?
For most MATIC holders, the switch to POL is designed to be a smooth and automatic process. If your MATIC is stored on the Polygon PoS chain, you don’t need to worry about taking any action—your tokens will automatically convert to POL at a 1:1 ratio.
However, things are different for those holding MATIC on the Ethereum network. In this case, users will need to manually migrate their tokens to POL through the Polygon Portal Interface, which Polygon has provided specifically for this purpose.
For users holding MATIC on the Polygon zkEVM (layer 2) network or on centralized exchanges, additional steps may be necessary to complete the migration. In these cases, you might have to bridge your MATIC tokens back to the Ethereum network before you can convert them to POL. Polygon has set up a migration contract to assist users in this process, but this method is geared toward more advanced users who are comfortable with technical operations. Since the process is permissionless, no approvals are needed, but it’s recommended that only those with the right technical knowledge attempt this option.
It’s also possible that your exchange may automatically complete the migration on your behalf without requiring any action from you, but this will vary from exchange to exchange, so be sure to check for their latest updates.
If you store your MATIC in hardware wallets, the process could require manual intervention. While Polygon has yet to release specific instructions for this, users with cold storage wallets should stay updated for further guidance on how to proceed.
As for the timeline, there is no set deadline for MATIC holders on Ethereum or zkEVM to convert their tokens to POL at this time. However, Polygon has indicated that the community may vote on establishing a deadline in the future, so it’s important to keep an eye on any upcoming announcements or changes.
Community Reaction and Price Action
Since the announcement of the migration from MATIC to POL, the price of POL has seen a downward trend. As of September 12, POL is trading around $0.38, reflecting a 10.7% drop over the past month. Its market cap currently stands at $1.25 billion.
However, there’s a detail worth noting: the circulating supply of POL is around 6.7 billion tokens, while its total supply is approximately 10.25 billion tokens. This discrepancy is due to the ongoing migration from MATIC to POL, which hasn’t been fully reflected in CoinMarketCap’s data.
A user on X pointed this out, suggesting that POL’s circulating supply should be updated to reflect the total 10.25 billion tokens, which would place its market cap at around $3.8 billion. This incomplete migration is one of the reasons why POL has slipped down the market cap rankings, sitting at 30 as of September 10.
Meanwhile, Ali Martinez, a respected crypto analyst, has shared insights on POL’s potential future price movements. He noted that POL seems to be forming a descending triangle pattern, a common technical indicator for a bearish trend. Martinez cited the importance of the $0.34 support level, suggesting that if POL holds this line, it could rebound as high as $0.94. On the flip side, if the support breaks, a correction down to $0.19 could be in play.
What Do Experts Think?
To better understand the implications of Polygon’s transition from MATIC to POL, crypto.news reached out to three industry experts:
- Daria Morgen, Head of Research at Changelly
- Tim Zinin, Founder of Botanica School
- Vadym Grusha, CEO of Trustee Plus
According to Morgen, the immediate impact will likely be minimal, with more meaningful changes emerging over time. She mentioned:
“In the short term, things will remain stable. The migration has been designed to be backward-compatible, ensuring that all existing applications continue to function without disruption. As the network develops, POL will play a key role in boosting both transaction speed and security.”
Zinin shared similar views but highlighted the long-term potential of POL, which could transform Polygon’s security model:
“In the short run, we might experience a few bumps, but once POL is fully integrated, it’s going to streamline transactions and make the network more efficient. POL doesn’t just secure one blockchain—it locks down multiple chains within Polygon’s interconnected network. Plus, with ZK tech in the mix, you’re adding another level of protection that makes the system even harder to compromise.”
However, the migration to POL isn’t just about better security and speed—it’s also a big move toward decentralized governance. POL introduces a community-controlled treasury, where users get a say in how funds are allocated. Morgen sees this as a powerful tool:
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