As a seasoned analyst with extensive experience in the crypto space, I have closely followed Polygon’s development and evolution since its inception. The upcoming mainnet upgrade on September 4, 2024, marks an exciting milestone for Polygon as it transitions from MATIC to POL and introduces new smart contracts.
On September 4, 2024, Polygon is planned to undergo a significant update to its mainnet, given the community’s affirmative vote on the suggested plan.
With this update, we move on from using the native MATIC token and introduce a new one, represented by the ticker symbol POL. Alongside it comes a set of newly developed smart contracts.
The Migration Process
According to Polygon Labs’ July 18 blog post, in compliance with PIP-42, it was collectively decided that validators on the Polygon Proof of Stake (PoS) network must deposit POL (the new token derived from MATIC) as collateral to receive both protocol incentives and transaction fees paid in POL.
SAVE THE DATE: MATIC → POL
After community consensus, the long-awaited upgrade is set for September 4th
• Initial phase: POL replaces MATIC as the native gas and staking token for Polygon PoS
• Subsequent phases: POL will serve a crucial role in the AggLayer
More details
— Polygon Foundation (@0xPolygonFdn) July 18, 2024
Beginning September 4, MATIC will be superseded by POL as the indigenous gas and staking token for Polygon’s Proof of Stake (PoS) chain. This shift signifies a significant step forward in Polygon’s development plan, in line with the overarching goals laid out in the “Polygon 2.0” blueprint unveiled last year.
The transition to the new POL token will necessitate various adjustments across multiple Decentralized Finance (DeFi) applications, decentralized apps (dApps), and infrastructure improvements on the Polygon network. Currently, Polygon employs two distinct scaling techniques: the Polygon Proof-of-Stake (PoS) sidechain and the zkEVM zero-knowledge rollup network on the Polygon network.
The new Polygon 2.0 structure intends to bolster the network’s security and productivity as a collective blockchain, unify liquidity, and amplify interoperability among various ZK-Rollup chains. AggLayer is anticipated to serve as a bridge connecting Polygon 2.0 chains and settling ZK-proofs for security on Ethereum instantly.
The Polygon Labs team expressed that the POL token functions as an exceptionally productive asset within the Polygon network, capable of rendering beneficial services to any linked chain, such as AggLayer itself.
In the long run, the collective opinion within the community indicates that POL will assume more responsibilities in Polygon’s staking platform, set to debut in 2025. These anticipated roles encompass block production, creation of zero-knowledge proofs, and involvement in Data Availability Committees (DACs).
What This Means for MATIC Holders
Matic token holders on the Polygon Proof of Stake (PoS) chain will experience a smooth transition as their tokens are automatically converted into POL with no necessary actions required from them. This hassle-free upgrade ensures that users can carry on interacting with the network uninterrupted.
As a crypto investor holding MATIC tokens, it’s essential to be aware that some actions may need to be taken regarding my tokens, especially for those on Ethereum, Polygon zkEVM, or centralized exchanges (CEXes). Fortunately, there’s an option to upgrade your MATIC tokens to POL through a migration contract that has already been deployed on Ethereum. This process enables permissionless upgrades at your own convenience, making the transition smooth and accessible for all users.
The POL upgrade was initially implemented on the test network on July 17, 2024, to guarantee a seamless transition later. This trial run served as an essential step in detecting and addressing potential problems, enabling users and developers to become accustomed to the new setup before transferring it to the main network.
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2024-07-19 07:19