- The Polygon network announces the switch from MATIC to POL in the near future.
- This is to offer greater token utility on the Polygon 2.0 chain.
- Token holders can make the 1:1 switch from an official Polygon link yet to be shared.
Polygon, the popular Ethereum scaling solution, announces a token upgrade proposal. In particular, this would mean that the platform will replace its native token MATIC, with a new token called POL. The upgrade aims to unify the value and utility of the Polygon 2.0 network and its various chains.
The utility of the new token, POL, will be to power the staking layer of Polygon 2.0. Validators will need to stake POL to participate in the block production process of any ecosystem chain, including Validium, zkEVM rollup, and Supernets. Accordingly, holders of POL will have the opportunity to become validators, earn protocol rewards and transaction fees, and participate in governance decisions.
The upgrade from MATIC to POL will involve a 1:1 conversion. MATIC holders will have four years to manually upgrade their tokens. Thus, holders must exercise caution and be extra vigilant. It is important to use official links from Polygon to avoid scams during the upgrade process.
The tokenomics of POL will have an initial supply of 10 billion tokens, the same as MATIC. Additionally, there will be 2% yearly emissions of POL tokens. These emissions will be allocated to validator rewards (1%) and the community treasury (1%).
The proposal has generated significant interest, with the MATIC token experiencing a price increase of up to 2.6% following the announcement. If accepted, the upgrade will allow network validators to support multiple chains using a single token, enhancing efficiency and simplicity.
Ultimately, each community within the Polygon ecosystem will decide whether to use POL for gas fees on their respective chains. POL holders will also have voting rights for governance proposals and will receive rewards in POL.
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The token upgrade represents an important step for Polygon as it aims to further enhance its network and provide a seamless experience for users and developers. The proposal highlights the continuous development and innovation happening within the Polygon ecosystem.
Polygon (MATIC) is a security according to the SEC. After Ripple’s historical XRP vs SEC win, MATIC should have a better chance. Holders everywhere are eager to see how much MATIC will be worth before its switch to POL. If MATIC surged right after XRP’s win, how much will MATIC surge after it is no longer branded a security?
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