Polygon has announced a pivotal change in its ecosystem, with the migration from MATIC to POL tokens set to occur on September 4, 2024. According to a report by Colin Wu, this significant transition will see POL replace MATIC as the primary gas and staking token for the Polygon Proof-of-Stake (PoS) network. Beyond this, POL is poised to play a crucial role in the upcoming AggLayer, marking a substantial evolution in Polygon’s token utility and network functionality.
The upgrade represents the culmination of extensive community feedback and governance. When the community first proposed POL through PIP-17, there was a consensus that Polygon’s growth demanded a more versatile token. POL emerged from this feedback as a necessary upgrade, promising expanded utility and enhanced functionality.
POL’s journey began last October when its ERC-20 contracts were launched on Ethereum. This initial step was crucial in paving the way for the full migration. As of July 17, the POL upgrade was tested on the testnet, allowing users and developers to familiarize themselves with the new system and address potential issues before the mainnet launch.
The migration will directly impact MATIC holders across various platforms. For those on Polygon PoS, the transition will be seamless. MATIC tokens will automatically convert to POL-on September 4, requiring no action from users. However, those holding MATIC on Ethereum, Polygon zkEVM, or centralized exchanges (CEXes) must take action to complete the upgrade.
Ethereum users can migrate their MATIC to POL using a migration contract that is deployed for this purpose. They can also use decentralized exchange (DEX) aggregators like 1inch, Kyber, or CowSwap to facilitate the swap. Meanwhile, zkEVM holders can bridge their MATIC tokens to Ethereum or swap them directly on zkEVM-based DEXs.
For decentralized finance (DeFi) protocols and decentralized applications (dApps) on Polygon PoS, no action is needed at the smart contract level, as liquidity pools will automatically update to POL. However, DeFi protocols may need to update price oracles and front-end interfaces to reflect the new POL token.
Polygon’s zkEVM Network Recovers from 10 Hour DowntimeOn Ethereum and zkEVM, DeFi protocols should prepare to integrate POL into their infrastructure. This includes updating smart contracts and establishing liquidity pools to accommodate POL. The same goes for centralized exchanges, where users should consult FAQs for specific migration procedures. Over the past 24 hours, Polygon (MATIC) has seen a price increase of 2.81%, reaching a value of $0.4198 at press time.
