Polygon’s New POL Token: What the Upgrade Means for the Network
POL Token – On September 4, Polygon’s native cryptocurrency, MATIC, underwent a significant technical upgrade, transitioning to the new Polygon Ecosystem Token (POL) on a 1:1 basis. This upgrade is a pivotal step towards the launch of Polygon 2.0, marking a major milestone in the network’s evolution. As part of this upgrade, POL becomes the primary gas and staking token for the Polygon network, enhancing its utility and community participation.
CEO Marc Boiron Explains the Benefits
Marc Boiron, CEO of Polygon Labs, highlighted the advantages of the upgrade, stating that it introduces a 2% emission rate, offering new opportunities for community engagement. Boiron emphasized that while the full migration process is ongoing, the initial phase of the community grants program has already facilitated the use of these new emissions. He noted in an exclusive interview with Cointelegraph:
“Now that there are 2% emissions being introduced through this upgrade, it’s going to give an opportunity for the community to participate. Technically, even though the full migration hasn’t happened, [season 1 of the community grants program] created some emissions that the community’s been able to use.”
POL Token: A Leap Towards Hyperproductivity
A key motivation behind the upgrade was to transform POL into a “hyperproductive” token. According to Boiron, this new token is designed to generate fees from a variety of sources, going beyond the capabilities of its predecessor, MATIC, which earned fees only from gas and staking activities. POL will now also accrue fees from additional functions, such as securing data availability and decentralizing sequencers, with even more fee-generation mechanisms planned for the future.
Boiron compared POL’s potential to the evolution of Ether (ETH), which currently only earns gas fees from transactions, suggesting that POL represents a significant advancement in token productivity.
Migration Details: What MATIC Holders Need to Know
The migration from MATIC to POL was finalized on September 4. MATIC holders do not have a strict deadline for the token upgrade, as all staked MATIC will be automatically converted to POL without requiring additional actions from users. The successful testnet upgrade was completed on July 17, paving the way for this transition.
The new POL token will be integrated into Polygon’s AggLayer, an aggregation layer designed to enhance cross-chain interoperability and connect siloed blockchains. This technical migration is a crucial component of the Polygon 2.0 vision, which aims to provide “infinite scalability” and unify various blockchains, including prominent layer-1s such as Ethereum and Bitcoin.
FAQ: Polygon Token Upgrade to POL
What is Polygon’s latest upgrade about?
Polygon has upgraded its native cryptocurrency from MATIC to the new Polygon Ecosystem Token (POL). This transition, finalized on September 4, 2024, positions POL as the network’s native gas and staking token, enhancing its utility and aligning with the launch of Polygon 2.0.
Why was the upgrade from MATIC to POL implemented?
The upgrade was implemented to improve the utility and productivity of Polygon’s token. The new POL token aims to become “hyperproductive” by earning fees from various sources beyond just gas and staking, thus supporting Polygon’s broader goals of increased scalability and network efficiency.
How does the POL token differ from the previous MATIC token?
The POL token offers additional functionality compared to MATIC. While MATIC only earned fees from gas and staking, POL will also generate fees from actions like staking for data availability and decentralizing sequencers. This makes POL a more versatile and productive asset within the Polygon network.
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