Polygon Labs Announces Technical Upgrade from MATIC to POL

Polygon Labs announced that the technical upgrade of the Ethereum layer 2 blockchain Polygon from MATIC to POL will be launched on September 4, 2024.

Polygon (MATIC) prices moved lower following the news, although losses also reflected downward pressure on other cryptocurrencies.

MATIC to POL Transition

Polygon’s transition from MATIC to POL was an upgrade that first appeared last July and was subject to community governance through PIP-17 in September.

In this proposal, the key idea is to replace MATIC with a new token for Gas and Stake. This upcoming upgrade is a step after the implementation of the POL ERC-20 contract in October 2023.

Polygon Labs officially announced the upgrade to POL on Thursday and revealed that POL will replace MATIC in the first phase. In later stages of the upgrade, POL will take on additional network functions, including those in AggLayer.

Significance of the Upgrade for MATIC Holders

According to Polygon Labs, those holding MATIC on the Polygon PoS chain do not need to do anything as the upgrade from MATIC to POL will be automatic.

However, certain actions may be required for holders of MATIC tokens on other chains and platforms. These other chains include Ethereum and Polygon zkEVM as well as centralized exchanges (CEX).

In this case, those preparing to migrate MATIC to POL will need to use a migration contract when the upgrade date arrives.

Future Prospects with POL Token

As the transition from MATIC to POL takes place, the Polygon network is gearing up for a promising future with enhanced functionalities and capabilities. POL is set to become the native gas and staking token of Polygon PoS, ushering in a new era of seamless transactions and network operations.

Furthermore, the introduction of POL is a strategic move aimed at addressing blockchain fragmentation and fostering shared liquidity through innovative solutions like AggLayer.