Polygon has set September 4 because the date for transition from its native MATIC tokens to the brand new Polygon Ecosystem Token (POL) tokens.
Polygon is gearing up for an upcoming transition from its native MATIC tokens to the brand new Polygon Ecosystem Token (POL) tokens. As per an August 18 announcement, the brand new replace is about to occur on September 4. It goals to assign POL the primary token for gasoline charges and staking functionalities throughout the scaling resolution’s Proof-of-Stake (PoS) community.
Notably, this plan comes below the broader Polygon 2.0 improve, which began with the preliminary launch of three Polygon Enchancment Proposals (PIPs).
The transition from MATIC to POL can be a phased rollout that displays Polygon’s broader ambitions to reinforce its community’s effectivity. Initially, POL will change MATIC to imagine duties because the core gasoline and staking token.
Polygon plans to incorporate POL additional into its cutting-edge AggLayer mission within the later phases. AggLayer, which is created to optimize Layer 2 options, will see POL taking part in a significant function in its operations, marking a brand new chapter within the community’s evolution.
It is very important notice that the testing of the Polygon PoS improve from MATIC to POL went dwell on July 17. The first purpose behind this testnet was to seek out and clear up any points earlier than the precise mainnet migration.
Migration Particulars
Polygon’s PoS community customers holding MATIC don’t must take any steps for this extremely anticipated transition. Alternatively, these with MATIC on Ethereum, Polygon zkEVM, or centralized exchanges may need to comply with sure procedures to take part. Curiously, Ethereum already has a migration contract in place, permitting for a seamless and permissionless improve for individuals who select to transition.
Notably, Polygon has not explicitly set any deadline for this token migration. Nonetheless, the neighborhood retains the ability to declare a deadline anytime, as per the discharge.
The Polygon 2.0 roadmap plans to introduce a brand new staking layer designed to reinforce Polygon’s Layer 2 (L2) options and the improve of Polygon PoS to zkRollup expertise. Amid this huge plan, Polygon announced two separate partnerships with Fox Company and Ronin Community in June to extend the use case of its zero-knowledge (ZK) expertise.
MATIC Worth Dynamics
Because the market digests this information, MATIC has proven a slight upward motion. It’s at the moment trading round $0.418, a 1% improve up to now 24 hours. This worth motion is accompanied by a surge in buying and selling quantity, up by 30% to $144 million.
With a market cap of $4.16 billion, MATIC at the moment ranks because the twenty first largest crypto by market capitalization, in accordance with CoinMarketCap.
Nonetheless, it’s essential to notice that MATIC has not carried out as strongly on this bull cycle in comparison with its explosive development within the final cycle. The token stays down by over 27% over the previous yr and is at the moment buying and selling 85% beneath its all-time excessive of $2.92, achieved in December 2021. MATIC holders expect the token to succeed in $2 by the height of this ongoing cycle.
Earlier this month, Web3 recreation GasHero announced that it burnt greater than 116,000 MATIC, value round $50,000, by gasoline charges on Polygon.
