Polygon is gearing up for a major mainnet upgrade on September 4, 2024. This upgrade will see the transition from the current native token, MATIC, to a new token called POL. Along with this change, fresh smart contracts will also be introduced.
The decision to switch to the POL token came after the community approved the proposal outlined in PIP-42. According to Polygon Labs, PoS validators on the Polygon network will need to stake POL in order to earn protocol rewards and transaction fees in POL.
The migration process is set to begin on September 4, with POL taking over as the native gas and staking token for Polygon’s Proof of Stake chain. This move is part of Polygon’s broader vision outlined in the “Polygon 2.0” plan introduced last year.
The transition to POL will involve updates to various DeFi protocols, dApps, and infrastructure to support the new token. The Polygon network currently utilizes two scaling solutions – the Polygon PoS sidechain and the Polygon zkEVM zero-knowledge rollup network.
The upcoming Polygon 2.0 architecture aims to enhance network security and efficiency, unify liquidity, and improve interoperability across multiple ZK-Rollup chains. The AggLayer component is expected to play a key role in connecting the Polygon 2.0 chains and securing ZK-based security proofs back on Ethereum.
In the long run, POL is expected to have broader utility within the Polygon network, including roles in the staking hub set to launch in 2025. These roles may include block generation, zero-knowledge proof generation, and participation in Data Availability Committees.
For current MATIC holders on the Polygon PoS chain, the transition to POL will be seamless as their tokens will automatically convert to the new token. However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges may need to take action to upgrade to POL through a migration contract deployed on Ethereum.
To ensure a smooth transition, the POL upgrade was first tested on the testnet on July 17, 2024. This testing phase allowed users and developers to identify and address any potential issues before the mainnet migration.
Overall, the transition to the POL token represents a significant milestone for the Polygon network and its community. With the introduction of fresh smart contracts and enhanced security features, Polygon is poised to further solidify its position as a leading blockchain platform.