Finance

Polygon Set To Migrate from MATIC To POL Tokens On September 4

3 months ago
Bitcoin Ethereum News

Polygon has announced that the migration from MATIC to POL tokens will officially take place on September 4, 2024.

POL will replace MATIC as the native gas and staking token of the Polygon Proof-of-Stake (PoS) network and will play a crucial role in the network’s AggLayer, a key part of its scaling strategy.

Migration Details:

– Transition Date: September 4, 2024
– Change: MATIC will be replaced by POL as the primary gas and staking token for Polygon’s PoS network.
– Purpose: The introduction of POL is designed to enhance Polygon’s functionality and support the AggLayer, which is central to the network’s future growth.

AggLayer Vision:

The AggLayer aims to create a unified, multichain network that allows shared liquidity and state across connected chains. It will host several ZK-powered Layer 1 and Layer 2 blockchains, all secured by a common validator set. Cross-chain transactions will be streamlined, becoming near-instant, with a single bridge connecting each blockchain to Ethereum.

Introducing the POL Token:

– Replacement: POL will replace MATIC on a 1:1 basis, ensuring a smooth transition for current MATIC holders.
– Enhanced Security: POL validators will oversee multiple chains within the AggLayer, providing a more secure and robust network.
– Increased Incentives: Validators will benefit from additional rewards and new roles within the network.
– Community Treasury: POL will support a Community Treasury dedicated to protocol development, research, and adoption incentives.
– Governance: POL holders will have governance rights over the Community Treasury, allowing them to influence the network’s future.

Tokenomics:

– Supply: The total supply of POL tokens will be 10 billion, matching the current supply of MATIC.
– Emission Rate: There will be a 1% annual emission rate for staking rewards and Community Treasury funding, with an additional 1% compounding annually for the Treasury.

Impact on MATIC Holders

MATIC holders on the Polygon PoS chain will automatically be migrated to POL tokens. However, those holding MATIC on Ethereum, Polygon zkEVM, or centralized exchanges will need to manually upgrade their tokens to POL.

This migration marks a significant step in Polygon’s evolution, enhancing the network’s scalability and security while offering greater incentives for validators and token holders.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/polygon-set-to-migrate-from-matic-to-pol-tokens-on-september-4/