Polygon (MATIC) to POL Token Transition is Set for September 4, Here is What You Need to Know

It's almost here! The Polygon network's long-awaited transition from MATIC to POL is set to take place on September 4, ushering in a new era of a community-driven token whose applications are more diverse and robust.

The long-awaited transition from MATIC to POL is almost here! The Polygon network will be fully shifting to POL on September 4, ushering in a new era marked by a community-driven token with more diverse and robust applications. Here's a quick rundown of what you need to know:

About POL

To provide some context, MATIC has been the native token of the Polygon network since its launch in 2020. However, as we've reported earlier, the network is undergoing a redesign under the Polygon 2.0 roadmap. As part of the redesigned protocol's tokenomics, the developer team is phasing out MATIC and introducing POL in its place.

POL is classified as a third-generation token—the first generation being Bitcoin's unproductive BTC token and the second being Ethereum's productive ETH token. As a third-gen token, POL is 'hyperproductive.' This means that while it takes on all the functions of productive tokens, POL enables owners to validate multiple chains, and each chain can offer these validators multiple roles within the ecosystem.

Some of the new token's touted benefits include infinite scalability for any number of Polygon chains without compromising security. POL will be more decentralized, enhancing security and resilience, while its feature of multiple chains for one token will encourage validators to be more active and reduce friction.

What Changes for Polygon?

Starting September 4, every single transaction on the Polygon network will use POL as the gas token. The network's validators will also have to stake POL to earn rewards and transaction fees.

For MATIC holders on the Polygon network, there's no action required. The network will automatically update the native staking and gas token to POL without any need for intervention. Those who hold MATIC on DeFi protocols or smart contracts on Polygon will also enjoy a seamless migration that won't require any action from them.

However, some action will be needed for those who hold their MATIC tokens on Ethereum, the Polygon zkEVM, centralized exchanges, etc. The Polygon team has announced a migration contract to help with the transition.

Those who hold MATIC on Ethereum are advised to use third-party decentralized exchanges like 1inch, which have independently integrated the migration contract. It's important to note, however, that the Polygon team does not guarantee these swaps and cannot be held responsible.

For MATIC owners whose tokens are on the Polygon zkEVM, they are advised to move their tokens to Ethereum and follow similar instructions as those who already hold their assets on the Ethereum network.

Coming to centralized exchanges, MATIC users will have to wait for instructions from the respective CEXes, though most are expected to offer a seamless migration that won't involve any action from the holders.

MATIC is trading at $0.419, up 1% in the past day as most coins dropped