Polygon Proposes Renaming MATIC to POL, Becoming Multi-Blockchain Token
Polygon has announced a proposal to change the "face" of the MATIC token, transforming it into the universal currency of the entire Polygon blockchain ecosystem.
Polygon Proposes Renaming MATIC to POL, Becoming Multi-Blockchain Token
Polygon, the blockchain aiming to scale Ethereum, has finally unveiled a long-awaited change related to the tokenomics of the MATIC token within the framework of the Polygon 2.0 upgrade.
Specifically, Polygon aims to rename the MATIC token to POL, designed to become the universal token within the Polygon ecosystem. Accordingly, POL will serve as the primary currency and staking token for transaction verification on Polygon POS, Polygon zkEVM, and Supernets - layer-2 networks built on the Polygon network, while also serving as a reward token across these networks.
The general goal of this upgrade is to expand the utility for MATIC/POL, increasing scalability without jeopardizing the overall security of the ecosystem.
Polygon proudly asserts that POL will become a third-generation cryptocurrency token, capable of supporting multiple blockchains with diverse roles. The previous two generations include Bitcoin (BTC) - the most fundamental cryptocurrency, and Ethereum (ETH) - the multitasking token on a single blockchain.
1/ Today, the next technical proposal of Polygon 2.0 is unveiled:
— Polygon | Aggregated (@0xPolygon) July 13, 2023
POL, the upgraded token of the Polygon protocol! 💫
POL is the next generation native token, designed to secure, align and grow the Polygon ecosystem.
Watch the video to get an idea how cool it is, then 🧵 pic.twitter.com/Gn7KcHpWEY
The transition process from MATIC to POL is expected to proceed smoothly, where token holders simply need to send MATIC to a predefined smart contract to receive an equivalent amount of POL at a 1:1 ratio. The projected timeline for converting MATIC tokens to POL tokens is set to span over four years.
This proposal will require approval from the Polygon community before implementation can commence, with an estimated timeline of several months.
The price of MATIC has seen a slight increase at the time of writing due to the announcement of the renaming to POL and the expanded utility. MATIC has surged significantly over the past week in anticipation of the tokenomics changes.
1-hour chart of the MATIC/USDT pair on Binance at 06:00 PM on July 13, 2023
In earlier updates of Polygon 2.0, Polygon introduced a new development roadmap for the Polygon POS chain and implemented the Re-staking mechanism for MATIC.
