Polygon Migrates From MATIC to POL, Price Fails to Impress

Ethereum layer-2 solution Polygon has finally unveiled its long-anticipated POL token. This upgrade will see the blockchain’s native token, MATIC, transition to POL. However, this action has failed to positively impact the asset’s price, as it trades at $0.368 at press time.

POL becomes the new ticker for Polygon’s native token. Users can redeem their MATIC for POL on a 1:1 basis. Crypto exchanges and price-tracking websites will also have to update the token’s ticker on their platforms.

Polygon Introduces POL

Polygon’s POL has been in the works since July 2023. Polygon Labs, the developer team behind the layer-2 blockchain, released a proposal to replace MATIC with POL, emphasizing that both tokens cannot co-exist. The team also explained that POL will become accessible to users across all Polygon-tied centralized and decentralized platforms. Upgrading to POL is part of the Polygon 2.0 roadmap.

With the proposal approved, POL will usher in a restructuring of the asset’s tokenomics and increased flexibility. Although retaining a total supply of 10 billion tokens, Polygon Labs explained that the POL tokens will have an annual 2% emission rate over 10 years. This enables the development team to fund the community treasury, which can be used to finance a grant program for the community.

Validators can also benefit from the token emissions as they continuously receive token rewards for securing the proof-of-stake (PoS) network.

Although MATIC holders in the Polygon mainnet do not need to take any action, those holding the digital asset across Ethereum, Polygon zero knowledge Ethereum Virtual Machine (zkEVM), and centralized crypto exchanges need to execute a migration contract to partake in the transition. On the bright side, Polygon Labs informed the public that there is no deadline for the migration.

Price Slumps Nearly 10%

When Polygon Labs disclosed plans to redecorate the MATIC token, its price soared by over 18%. Currently, however, the token has failed to impress. With a 9.13% price decline, MATIC trades at $0.3689.

Source: CoinStats