Layer 2 blockchain Polygon will upgrade its MATIC token to POL as part of the Polygon 2.0 upgrade starting on September 4. POL will be the new primary token for gas payments and staking on Polygon’s proof-of-stake consensus.
This upgrade is a major milestone, marking a shift towards a more integrated and scalable network. POL is set to play a crucial role in Polygon’s expanding network of aggregated blockchains, known as AggLayer. Future functionalities will include block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs).
Users holding MATIC on the Polygon network will see an automatic upgrade, while those on Ethereum, Polygon zkEVM, or centralized exchanges need to take additional steps. Polygon expects most major exchanges to handle the upgrade automatically, but incorrect token symbols may display if users don’t update RPC settings in their wallets.
The upgrade, first announced in July 2023, promises significant scalability and liquidity improvements, with an initial POL supply of 10 billion tokens. This move is strategic for Polygon, positioning it as the “Value Layer of the Internet” and enhancing its ecosystem with governance rights and validator rewards. This transition is crucial as Polygon’s NFT sales recently outpaced Solana and Bitcoin, despite a broader NFT market decline.
