Polygon MATIC To POL Transition Goes Live, What It Means For Investors?
Highlights
- Polygon has completed its MATIC to POL migration
- Both tokens will co-exist for a short while with POL serving as the core token for the ecosystem
- Top exchanges are lending their support for POL
The long-awaited migration of MATIC to POL has finally gone live as earlier scheduled by the Polygon team. The Layer-2 protocol announced the milestone on X. It noted that its teams spent a whole year of community-led discussions and consensus regarding the migration.
The Polygon Hyperproductive POL Token
On July 18, Polygon Labs made an official announcement stating that the MATIC to POL upgrade will go live on September 4. The team completed the community-driven upgrade today. Following the successful migration, every transaction on Polygon Proof-of-Stake (PoS) will use the hyperproductive POL token as the native gas and staking token.
The Ethereum L2 noted that the token transcends beyond just a ticker change. Instead POL was described as a technical upgrade that sets the stage for the ecosystem’s future as an aggregated network. Apart from its utility for gas, POL can be used to fuel the grants ecosystem and community Treasury.
Similarly, the blockchain may utilize it for validator rewards or even as payment for governance fee.
As it revealed, it could also play a role in providing network security for services such as sequencing, ZK proof generation, participation in DACs and more. It is worth noting that all these potential utilities are subject to community consensus. Polygon has always made it clear that subsequent expansion of POL’s functionality, especially within the AggLayer, depends on the community consensus.
The Deal for Investors
MATIC investors are not under any pressure to migrate to the new gas token immediately. Significantly, the introduction of POL is designed to strengthen the infrastructure of the entire L2 ecosystem. It has different roles to play across various blockchains within the network with the aim of improving the network.
As a result, investors are likely to experience enhanced utilities to get the best of the new protocol. In the long run, Polygon could become one of the top Ethereum L2s with a sizeable market share.
The migration has received support from some of the biggest names in the crypto ecosystem. Last week, Binance announced its support for the migration. The exchange said it will delist all MATIC spot trading pairs on September 10, 2024, at 03:00 UTC, including pairs like MATIC/BNB, MATIC/BTC, and MATIC/USDT.
Coinbase also hinted at plans to support POL on both Polygon and Ethereum network.
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