Polygon (MATIC) Is Gearing Itself Up for a New-Look Token on September 4th

The upgrade proposal was passed by the community after being slated over 12 months ago. Polygon’s move comes as part of the team’s decision to transform the protocol into an aggregated blockchain – Polygon 2.0.

Polygon (CRYPTO: MATIC) is preparing to introduce a new token on September 4.

The community passed an upgrade proposal more than a year ago, paving the way for the new token.

The team’s goal is to transform Polygon into an aggregated blockchain, known as Polygon 2.0.

This new vision will involve harnessing developer talent from different networks and enhancing blockchain interoperability.

“A new direction…necessitated an upgraded token,” according to a blog post by Polygon.

The team added, “We’re excited to announce the upcoming deployment of the new token, and we’re confident that it will play a vital role in the next phase of Polygon’s evolution.”

As of September 4, the new token, called POL, will take over the basic functionalities of the current MATIC token for Polygon users.

This includes tasks like staking, paying gas fees and voting in governance proposals.

The Polygon development team will continue to implement upgrades to ensure POL remains “future-proof.”

Their initial focus is likely to be on improving AggLayer functionality (a Polygon protocol that combines separate chains into the network into one seamless ecosystem).

Additionally, the hope is that POL can be used to interact with a 2025 staking hub and help holders participate in Data Availability Committees (DACs).

SAVE THE DATE: MATIC → POLAfter community consensus, the long-awaited upgrade is set for September 4th

Initial phase: POL replaces MATIC as the native gas and staking token for Polygon PoS

Subsequent phases: POL will serve a crucial role in the AggLayer

More details? pic.twitter.com/SyxsFAlOeZ

MATIC Tokens On Polygon Will Automatically UpgradeThose who currently hold MATIC within the Polygon ecosystem won’t have to do a single thing — the transition will occur automatically.

When you go to sleep on September 3, you’ll wake up with an equivalent number of POL tokens in your wallet or dApp.

However, those who own the ERC-20 version of MATIC, or alternatively, hold the tokens in a centralized exchange, may have to put in a little effort to complete the transition.

Eth versions of MATIC can be upgraded via a “Migration Contract,” while other token standards may require bridging to the Ethereum network before they can be transformed.

The market didn’t react strongly to the news, with the price of MATIC falling nearly 5% over the past 24 hours, in line with most other major cryptocurrencies.