MATIC’s migration to a new token (POL) marks a significant milestone in the evolution of Polygon, one of the most prominent second-layer networks in the entire Ethereum ecosystem. This change, which was implemented yesterday (September 4), not only represents a technical upgrade, but also has profound implications for the protocol.
In this article we review some of the features of this new update of the aforementioned second layer network. The token change was confirmed by Polygon through a press release.
The migration from MATIC to POL is part of a profound change
As mentioned, this transformation is part of the “Polygon 2.0” roadmap. It is an ambitious plan that seeks to consolidate and improve the network’s capabilities. POL will become the native token of the Polygon main chain, specifically the Proof of Stake (PoS) chain. It will also have a native role in other networks within its ecosystem.
In the initial phase of this migration, POL will replace MATIC as the native token for gas and staking on the Polygon PoS network. This step thus underlines its growing importance in the Polygon infrastructure.
One of the most significant changes brought about by the migration is the new tokenomic structure. In this regard, an annual emission rate of 2% will be introduced, which represents a considerable change from the previous model. This new emission will be divided between rewards for the network’s validators and a community treasury. The latter is defined as a “self-sustaining ecosystem fund.”
This fund aims to support the development and growth of the network, ensuring the long-term sustainability of Polygon’s initiatives.
It’s official. The MATIC to POL upgrade is now live, after a year of community-led discussions and consensus 💜
What happens now? Starting today, every transaction on Polygon PoS uses the hyperproductive token as the native gas and staking token.https://t.co/j6vlMTh9ZX pic.twitter.com/hx9l7GS4zv
—Polygon | Aggregated (@0xPolygon) September 4, 2024
The update allows you to recover update keys
For Marc Boiron, CEO of Polygon Labs, the upgrade is necessary due to technical limitations related to MATIC upgrade keys. As a result, these were burned years ago, making it impossible to make changes to MATIC, forcing the network to introduce a new token that allows for greater flexibility and adaptability.
The introduction of emissions through POL will strengthen the ecosystem and give the community greater control over resources, thereby allowing them to actively participate in the growth of the network, he said.
POL’s market features are the same as MATIC. Source: CoinGecko
More than just a replacement token
The migration from MATIC to POL is much more than a replacement. As such, it will play a key role in many of the new features planned in Polygon’s roadmap.
A key element will be the AggLayer, a system designed to aggregate affiliated blockchains built with Polygon technology. This tool will be crucial for the expansion and integration of new chains within the ecosystem, facilitating the decentralization and efficiency of the network.
Additionally, POL has been proposed to play a key role in the Polygon staking hub, which is set to launch in 2025. This hub will allow POL to support a variety of tasks, such as block generation, zero-knowledge proof generation, and participation in data availability committees (DACs).
These features will not only strengthen the security and reliability of the network, but also improve user participation and incentives. Overall, they make POL a central element in the governance and management of the network.
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