- On September 4, the Polygon Network will undergo a major upgrade in which it will switch from using the $MATIC token to the new $POL token.
- The purpose of this update is to improve network performance and increase the token’s usefulness inside the Polygon ecosystem.
Following a series of community-driven Polygon Improvement Proposals (PIPs), $POL will take over as the principal token for gas costs and staking on the Polygon PoS network during the first phase of the upgrade.
The community will be able to investigate further applications of $POL, specifically in AggLayer, in later versions.
What does this signify for owners of $MATIC?
There will be no need for holders of $MATIC on Polygon PoS to take any action as the move will happen automatically. Token migration may be necessary for holders of $MATIC on Ethereum, Polygon zkEVM, or centralized exchanges (CEXes).
Owners of Ethereum can convert $MATIC to $POL via the migration contract that is offered or by using decentralized exchange (DEX) aggregators. In a similar vein, holders of Polygon zkEVM have two options: they can use zkEVM-based DEXs or bridge their $MATIC to Ethereum. While CEX users are recommended to adhere to the particular instructions for the migration process supplied by their exchanges.
Staking rewards for Ethereum’s $MATIC will continue uninterrupted as staking participants and delegators will automatically have their staked $MATIC converted to $POL.
Getting Ready for the Transition
On July 17, 2024, a testnet migration was started in order to make sure the upgrade went well and to find and fix any possible problems before the mainnet switchover.
It is recommended that developers, DeFi protocols, and infrastructure providers get ready by learning about the upgrading procedure and making the necessary system updates. DeFi protocols will have to update their smart contracts and switch to $POL pricing oracles, and wallet and oracle providers will need to modify their systems to accommodate $POL.
The Polygon Network has advanced its capabilities and stayed true to its concept of a multi-chain environment with the shift from $MATIC to $POL.
Prior to the September 4 transfer, stakeholders should stay up to date via Polygon’s official channels with the most recent information and instructions.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
