POL Upgrade | Everything to Know

Users w/ MATIC on Ethereum can upgrade today via Polygon Portal Interface: https://t.co/Ibs1ONels1There is no deadline for users to upgrade.

As Polygon (MATIC) continues its journey toward becoming an aggregated network, one of the key developments that have recently taken place is the migration from the MATIC token to a new native token called POL.

This transition is part of Polygon's larger 2.0 roadmap, which aims to build a more efficient and scalable blockchain network.

In this article, we will explore what this migration means for MATIC holders, how experts are forecasting POL's future role in Polygon's 2.0 roadmap, and what we can expect as the network continues to evolve.

What does the MATIC to POL migration mean for MATIC holders?

According to the announcement, the POL token will replace MATIC as the native gas and staking token on Polygon's main proof-of-stake chain. It will also play a crucial role in Polygon's larger 2.0 roadmap.

For MATIC holders, this migration raises several questions: what does this mean for the future of their holdings? How will it impact Polygon's overall performance? And what can we expect as the network continues to evolve?

Let's dive deeper to understand what POL is, why the upgrade happened, and what it means for the future of Polygon and its users.

Understanding the migration from MATIC to POL

The migration from MATIC to POL is a community-driven upgrade that aims to reshape Polygon's future.

POL is being introduced as the Polygon ecosystem evolves into what's called an “aggregated network” through a new technology layer known as the AggLayer.

This upgrade is part of Polygon's vision to unify liquidity and information across various chains within its ecosystem, helping it grow into a more powerful and interconnected blockchain network.

So, what exactly is POL? In simple terms, it's a new utility token designed to do more than just replace MATIC. While it will still be used for basic functions like gas fees and staking on the Polygon network, its future potential is much broader.

POL is what Polygon calls a “hyperproductive” token, meaning it's set up to take on multiple roles across the entire Polygon ecosystem.

For example, it could help secure not just one chain but an entire network of blockchains as Polygon shifts towards advanced technologies like zero-knowledge rollups.

Initially, POL will function just like MATIC did — powering transactions on Polygon's PoS network. Validators who secure the network and users who make transactions will start using POL in place of MATIC. This transition will be smooth thanks to backward compatibility.

This means that apps, validators, and users won't experience any disruptions during the upgrade. Everything will work as it always has, but with the added benefits that POL brings.

What's especially interesting about POL is its future utility, which will be shaped by the community. Polygon's roadmap envisions POL playing a central role in the network's staking hub, expected to launch in 2025.

This could expand the use of POL far beyond just staking and gas fees, possibly giving it more influence in the governance and security of the broader aggregated network.

One of the key changes with POL lies in its tokenomics, or how the supply of tokens is managed.

Over the next 10 years, POL will have a 2% annual emission rate, meaning new POL tokens will be created to support the network. Half of these tokens will go to validators as rewards for securing the network, while the other half will go to a community treasury.

This treasury will fund development projects within the Polygon ecosystem, supporting builders and innovators.

Smooth transition or challenges ahead?

For most MATIC holders, the switch to POL is designed to be a smooth and automatic process.

If your MATIC is stored on the Polygon PoS chain, you don’t need to worry about taking any action—your tokens will automatically convert to POL at a 1:1 ratio.

However, things are a bit different for those holding MATIC on the Ethereum network. In this case, users will need to manually migrate their tokens to POL through the Polygon Portal Interface, which Polygon has provided specifically for this purpose.

For users holding MATIC on the Polygon zkEVM (layer 2) network or on centralized exchanges, additional steps may be necessary to complete the migration.

In these cases, you might have to bridge your MATIC tokens back to the Ethereum network before you can convert them to POL. Polygon has set up a migration contract to assist users in this process, but this method is geared toward more advanced users who are comfortable with technical operations.

Since the process is permissionless, no approvals are needed, but it’s recommended that only those with the right technical knowledge attempt this option.

It’s also possible that your exchange may automatically complete the migration on your behalf without requiring any action from you, but this will vary from exchange to exchange, so be sure to check for