Polygon (MATIC). Source: photo_gonzo - stock.adobe.com

Key Takeaways:

MATIC to POL Upgrade: Polygon is replacing its MATIC token with POL as part of its “Polygon 2.0” roadmap, offering greater flexibility in token issuance.
Network Transition: POL will become the native token across Polygon’s ecosystem, initially replacing MATIC on the PoS chain and playing a key role in future developments like the AggLayer and staking hub.
Tokenomics Overhaul: The upgrade introduces a 2% annual emission rate to support validators and the community treasury, aiming to enhance ecosystem growth and decentralization.

Polygon, a leading Ethereum layer-2 network, is undergoing a major upgrade, replacing its MATIC token with a new POL token as part of the broader “Polygon 2.0” roadmap.

This upgrade, set to activate this Wednesday, introduces greater flexibility in token issuance and marks a significant transition for the network.

we interrupt your doomscroll with another reminder MATIC will be upgraded to POL tomorrow 🫡

the tl;dr for the hyperproductive token: https://t.co/brdQT9WeFa pic.twitter.com/D63qiqdZPX
— Polygon | Aggregated (@0xPolygon) September 3, 2024

The swap will be automatic for most users, and POL will become the native token for the Polygon PoS chain and other chains within the Polygon ecosystem.

Initially, POL will replace MATIC as the gas and staking token on the Polygon PoS network.

Over time, it will play a crucial role in the AggLayer, a system designed to aggregate blockchains using Polygon’s technology.

Additionally, POL will be integral to the Polygon staking hub, expected to launch in 2025, supporting activities like block generation and zero-knowledge proof generation.

The upgrade also brings changes to tokenomics, introducing a 2% annual emission rate to support validators and fund the community treasury, fostering ecosystem growth and decentralization within the Polygon network.