Polygon Labs has introduced Ethereum Layer 2 blockchain Polygon’s technical improve for MATIC to POL will go reside on September 4, 2024.
The Polygon (MATIC) price traded decrease amid the information, though the losses additionally mirrored the draw back strain throughout different cryptocurrencies.
MATIC to POL transition
Polygon’s transition from MATIC to POL is an improve that first surfaced in July final 12 months and made to group governance by way of PIP-17 in September.
On this proposal, the important thing thought is the substitute of MATIC with a brand new token that might be used for fuel and staking. This upcoming improve is a step that follows the POL ERC-20 contract implementation in October 2023.
Polygon Labs made the official announcement for the improve to POL on Thursday, revealing the preliminary part as one that can see POL exchange MATIC. In later phases of the improve, POL will tackle extra community performance, together with within the AggLayer.
The AggLayer is a decentralized protocol with a typical bridge and ZK-powered mechanism designed to unravel problems with blockchain fragmentation by means of sovereign chains and shared liquidity.
“But even as the aggregated Polygon network emerges, POL will have immediate utility on the widely adopted Polygon Proof-of-Stake (PoS) network that exists today: POL will be the native gas and staking token of Polygon PoS—and fundamental to Polygon network security,” Polygon Labs wrote in a weblog publish.
What does it imply for MATIC holders?
In accordance with Polygon Labs, those that maintain MATIC on the Polygon PoS chain don’t need to do something because the improve from MATIC to POL might be automated.
Nevertheless, for holders with their MATIC tokens on different chains and platforms might have want take sure actions. These different chains embrace Ethereum and Polygon zkEVM in addition to centralized exchanges (CEXs).
On this case, when the improve date rolls in, these able to migrate MATIC to POL might want to use a migration contract.