The Polygon network, one of the main scalability solutions for Ethereum, is preparing for a major update. On September 4, 2024, Polygon will replace its native MATIC token with POL, marking a crucial step in the evolution of its crypto ecosystem.

From MATIC to POL: What Crypto Holders Need to Know

The transition from MATIC to POL aims to improve the functionality and efficiency of the Polygon network. POL will become the new gas and staking token for the Polygon Proof-of-Stake (PoS) network. This update is essential to support the future developments of its growing crypto ecosystem.

For MATIC holders on the Polygon PoS network, no action is required. Their crypto tokens will be automatically updated to POL. However, those holding MATIC on Ethereum, Polygon zkEVM, or on centralized exchanges (CEX) will need to migrate their tokens to POL. The migration will be on a 1:1 basis, meaning the total quantity of tokens will remain unchanged.

The Role of POL in the AggLayer

POL not only replaces MATIC; it plays a strategic role in strengthening Polygon’s AggLayer. The AggLayer aims to create a unified crypto ecosystem of networks using Polygon’s Chain Development Kit (CDK), thus avoiding the centralization and security risks associated with centralized bridges. POL will also be fundamental for Polygon’s future Staking Hub, planned for next year.

MATIC holders must prepare for this transition to continue participating in staking and transaction activities on the crypto network. This update is designed to improve the efficiency and scalability of Polygon’s operations. Additionally, MATIC holders can expect a potential increase in the value of their tokens, with forecasts indicating a possible 20% rise.

The migration from MATIC to POL represents a major milestone for Polygon. It strengthens its infrastructure and paves the way for new opportunities for its crypto users. MATIC holders must stay informed and ready to act to fully benefit from this historic transition.

Source : Cointribune EN - Aug 19, 2024