Polygon, a leading Ethereum scaling solution, has unveiled a proposal to upgrade its native token MATIC to a new protocol token called POL. The upgrade aims to advance security and growth within the Polygon ecosystem. The details of the upgrade can be found in a whitepaper released by the blockchain platform’s founders and researchers.

POL Token’s Utility

The proposed upgrade will introduce the POL token, which offers enhanced utility to holders. POL token holders can become validators and earn rewards. Additionally, validators will be able to operate across multiple chains, including the Polygon proof-of-stake (PoS), zkEVM, and Supernets.

Under the upgrade plan, MATIC holders will be required to send their tokens to a designated smart contract, which will automatically replace MATIC with POL in a 1:1 ratio and send the new tokens to the holder’s address. The upgrade will result in only one native token, POL.

If approved by the Polygon community, the upgrade could begin within the next six months, and holders will have sufficient time to complete the switch, with a suggested timeline of four or more years.

Following the announcement of the upgrade proposal, the price of MATIC experienced a surge, reaching its highest level since early June. MATIC’s trading volume also increased by 21.7% in the past 24 hours.

FAQ

What is Polygon?

Polygon is a leading Ethereum scaling solution that aims to improve scalability and interoperability for decentralized applications (dApps).

What is the proposed upgrade for MATIC?

The proposed upgrade for MATIC involves replacing it with a new protocol token called POL. This upgrade is part of the Polygon 2.0 roadmap and aims to enhance security and growth within the Polygon ecosystem.

What is the utility of the POL token?

The POL token offers enhanced utility to holders. It allows them to become validators and earn rewards. Validators can operate across multiple chains, including Polygon’s proof-of-stake (PoS), zkEVM, and Supernets.

How will the upgrade from MATIC to POL work?

Holders of MATIC tokens will need to send their tokens to a designated smart contract, which will automatically replace MATIC with POL in a 1:1 ratio and send the new tokens to the holder’s address.

When will the upgrade take place?

If approved by the Polygon community, the upgrade could begin within the next six months. Holders will have sufficient time, potentially four or more years, to complete the switch from MATIC to POL.

What impact did the upgrade proposal have on the price of MATIC?

Following the announcement of the upgrade proposal, the price of MATIC experienced a surge, reaching its highest level since early June. MATIC’s trading volume also increased by 21.7% in the past 24 hours.