Polygon Plans to Replace MATIC by Unveiling POL Token Contract on Ethereum

Polygon Labs called the launch of the Polygon token a major milestone on the Polygon 2.0 journey toward building the Value Layer of the Internet.

In an announcement on Wednesday, October 25, Polygon Labs announced the launch of its new Polygon Token, POL, on the Ethereum blockchain network. The POL token’s purpose is to succeed the MATIC token as the next-generation, highly efficient ecosystem for Polygon. This ecosystem encompasses the primary Polygon blockchain, the Polygon zkEVM network, and several supernets.

In its press release, Polygon Labs said that this is a major milestone in its journey for Polygon 2.0. “Today marks a major milestone on the Polygon 2.0 journey toward building the Value Layer of the Internet. The upgrade to POL has been initiated on the Ethereum mainnet, after months of development, community consultation and a successful testnet launch,” said Polygon Labs.

Based on blockchain records, the creation of the new token occurred on October 25 at 9:06 am UTC. The official name of the token is the “Polygon Ecosystem Token.” In their announcement, the Polygon team stated that POL will energize an extensive ecosystem of Layer 2 chains based on zero-knowledge technology. This shall happen through the implementation of a “re-staking protocol” that enables token holders to stake POL on multiple chains, facilitating various functions simultaneously.

Polygon Labs’ Push for POL Token

Back in September, Polygon commenced the transition from MATIC to the POL token, initiating this process with the introduction of three Polygon Improvement Proposals (PIPs). PIP-18, in its Phase 0, laid the foundation for an extensive network of interconnected Layer 2 chains driven by zero-knowledge technology, with the aim of scaling Ethereum to the magnitude of the Internet.

The POL upgrade also looks towards facilitating the forthcoming milestones outlined in the Polygon 2.0 roadmap. This further includes the launch of a new staking layer designed to empower Polygon L2, the upgrade of Polygon PoS to zkRollup. Additionally, it includes the implementation of advanced interoperability and shared liquidity protocol, all harnessed by zero-knowledge technology.

The team has underscored that, as of now, the POL token is not in use within any Polygon network systems. Stakeholders continue to engage in staking activities through the traditional MATIC token on both Polygon PoS and Polygon zkEVM. Also, the settlement of gas fees on the PoS network shall happen using MATIC. Therefore, there is currently no requirement for users, validators, or application developers to convert their MATIC holdings into POL.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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