CoinMarketCap: Read what our contributors have to say. This content is provided by the community. DYOR!
Polygon’s MATIC to POL Token Migration on September 4: Everything You Need to Know
Table of Contents
Market Musing-g

Polygon’s MATIC to POL Token Migration on September 4: Everything You Need to Know

BSCN
By BSCN
5 months ago
3 mins read
Polygon’s MATIC to POL Token Migration on September 4: Everything You Need to Know
Polygon Ethereum scaling solution, is preparing for a major shift in its ecosystem. On September 4, 2024, the MATIC token will officially migrate to POL, a new token designed to enhance the network’s functionality and support its ambitious AggLayer project. 

The Migration Process

Polygon has outlined the migration of MATIC to POL in a multi-phase rollout. This change is pivotal as POL will replace MATIC as the native gas and staking token for the Polygon Proof-of-Stake (PoS) network. 

 

The new token will reportedly play a significant role in Polygon’s AggLayer, which is central to its scaling solutions. This move is expected to enhance the network's functionality and facilitate future developments within Polygon’s expanding ecosystem.

 

The AggLayer is a core component of Polygon’s vision for scaling. It aims to create a unified network of chains using the Polygon Chain Development Kit (CDK), addressing centralization and security concerns often associated with traditional centralized bridges. 

Polygon's AggLayer Vision

The AggLayer is defined as a horizontally scalable multichain network that enables shared liquidity and state across connected chains. It will host several ZK-powered Layer 1 (L1) and Layer 2 (L2) blockchains, secured by a common validator set. 

 

Using this setup, cross-chain transactions will be near-instant, and a single cross-chain bridge will connect each blockchain to Ethereum, eliminating the need for each blockchain to maintain its own bridge.

 

Per reports, the introduction of the Polygon zkEVM prover kit will also allow developers to convert existing EVM chains into ZK L2s, integrating them into the AggLayer. This approach aims to enhance user experience by making multiple blockchains function seamlessly together.

Introducing the POL Token

The POL token will replace MATIC on a 1:1 basis starting September 4. According to the Polygon team, POL is set to improve upon MATIC in several ways:

  • Shared Security: POL validators will validate multiple chains within the AggLayer, enhancing overall security.

  • Increased Incentives: Validators will receive additional rewards and roles, boosting participation and engagement.

  • Validator Roles: POL introduces new roles for validators, including generating ZK proofs and participating in data availability committees.

  • Community Treasury: POL will support a Community Treasury funded by continuous POL emissions. This treasury will finance protocol development, research, grants, and adoption incentives.

  • Governance: POL holders will have a say in managing the Community Treasury.

POL Tokenomics

The POL token will have an initial supply of 10 billion tokens, matching the total supply of MATIC. It will feature an annual emission rate of 1%, allocated for staking rewards and community treasury funding. An additional 1% annual compounding emission will be dedicated to the Community Treasury.

Impact on MATIC Holders

For MATIC holders on the Polygon PoS chain, the migration to POL will be automatic, with no required action. 

 

However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges (CEXs) will need to take steps to upgrade their MATIC to POL. Learn more here.
0 likes
|

Other articles published on Aug 23, 2024

Market Musing-g

Powell Speaks: Bitcoin (BTC) Rises, DXY Crashed! Here's the Latest Situation!

With Powell's dovish statements, Bitcoin passed $62,000, while the Dollar Index (DXY) fell below 101 for the first time since December. Continue Reading: Powell Speaks: Bitcoin (BTC) Rises, DXY Cra...
By Bitcoin Sistemi EN
5 months ago
2 mins read
Market Musing-g

SEC lawsuit against Kraken moves forward

A judge has decided that the lawsuit accusing crypto exchange Kraken of running an unregistered securities exchange is going to trial. The company tried to weasel out of it, asking the judge to thr...
By Cryptopolitan_News
5 months ago
3 mins read
Market Musing-g

Sony to Debut Soneium: A New Ethereum Layer-2 Network

Sony and Startale Labs are preparing to launch Soneium, focusing on scalability and mainstream blockchain adoption. Soneium will support a developer-friendly environment, with technical guidelines ...
By Crypto News Land
5 months ago
3 mins read
Market Musing-g

Bitwage Powers Bitcoin Payroll for 4,500 Companies

Bitwage is celebrating its 10-year anniversary by highlighting its substantial growth in the industry.
By The Crypto Times
5 months ago
2 mins read
Market Musing-g

Meme Kombat Launches Season 2 With Major Upgrades – Grab Limited Edition Fighter NFTs

Meme Kombat ($MK), the ultimate meme coin brawl-fest, has just launched its second season, packed with even more exciting upgrades. This gaming sensation, which raked [...]
By Inside Bitcoins
5 months ago
5 mins read
Market Musing-g

Bitcoin Price Surges Towards $62k as Fed Chair Jerome Powell Declares ‘Time for Policy Adjustment’

The post Bitcoin Price Surges Towards $62k as Fed Chair Jerome Powell Declares ‘Time for Policy Adjustment’ appeared first on Coinpedia Fintech News Federal Reserve Jerome Powell outlined the Feder...
By CoinPedia News
5 months ago
2 mins read

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!