“Revolutionizing the world of blockchain, Polygon 2.0 reaches a remarkable milestone as it introduces the groundbreaking POL contracts, replacing MATIC on the Ethereum Mainnet, heralding a new era of seamless and efficient transactions.”
Polygon Labs (CRYPTO: MATIC) has announced plans to update its roadmap with the new POL token replacing the MATIC token. The company emphasizes that this decision is unrelated to recent regulatory events surrounding the legal status of MATIC.
The deployment of the POL token began on a testnet in early October and is now being rolled out on the Ethereum mainnet. This new token is an evolution of MATIC and is designed to align with the architecture of the upcoming Polygon 2.0 upgrade.
In terms of price action, MATIC has seen a 33.9% drop in trading volume in the past 24 hours, with the token’s price down around 1% at the time of writing.
The Polygon 2.0 upgrade will involve launching a new staking layer, transitioning to zkRollup for Polygon’s proof-of-stake, and implementing a ZK-powered interoperability and shared liquidity protocol for all Layer 2s.
It is important to note that the POL token will not immediately replace MATIC. The replacement will require governance approval and will be synchronized with the rollout of the Polygon 2.0 upgrade. MATIC holders will have four years to migrate their holdings to the new token.
This development follows a series of approved Polygon Improvement Proposals in September, which outlined the specifications for the POL token.
The introduction of the POL token is significant as it will serve as the main cryptocurrency for the Polygon 2.0 ecosystem. It will support a network of zero-knowledge-based Layer 2 chains and offer features such as staking, community ownership, and governance.
Polygon Labs describes POL as a next-generation hyperproductive token that will power various zero knowledge-based Layer 2 chains. It will enable POL holders to validate multiple chains and perform multiple roles on each of those chains.
By functioning as a single token for all Polygon-based networks, including the main Polygon blockchain, the Polygon zkEVM network, and supernets, POL aims to streamline operations and enhance efficiency.
In other news, Polygon’s co-founder recently stepped down after six years with the company to embark on new adventures.
Note: The views and opinions expressed in this blog are those of the author and do not necessarily reflect those of Nasdaq, Inc.