Polygon is set to transition from MATIC to POL tokens as its native asset on September 4. This migration is key to the network’s ecosystem and its role in the AggLayer.
Polygon, the most extensive Ethereum scaling solution, has disclosed a substantial update to its network, which signifies the transition from MATIC tokens to POL tokens as its native asset.
This migration, which is scheduled for September 4, will replace MATIC with POL, thereby playing a critical role in the Polygon ecosystem, including its position within the AggLayer.
Migration from MATIC to POL
Polygon, a prominent blockchain platform, has announced that POL will replace MATIC as the new gas and staking token for the Polygon PoS (Proof-of-Stake) network.
The objective of this modification is to improve the network’s functionality and facilitate future advancements within Polygon’s expanding ecosystem.
MATIC holders on a variety of platforms, such as Ethereum, Polygon zkEVM, and centralized exchanges (CEX), will be required to take the necessary steps to migrate their tokens to POL. Nevertheless, the total supply will remain unaltered, as they will receive new POL tokens on a 1:1 basis.
To ensure ongoing participation in the network’s staking and transaction activities, the process is essential, as it is consistent with the platform’s evolving infrastructure. It is anticipated that this will improve the efficacy and scalability of Polygon’s operations.
The function of POL in the AggLayer
The introduction of POL is not merely a token exchange; it is a strategic decision to fortify Polygon’s AggLayer, which is a critical element of the network’s scaling solutions.
AggLayer’s objective is to establish a unified ecosystem of networks by employing the Polygon Chain Development Kit (CDK) to circumvent the centralization and security risks associated with conventional centralized bridges.
Polygon has declared that POL will serve a “critical role” in the multi-chain AggLayer ecosystem, subject to community governance. Polygon’s forthcoming Staking Hub, which is expected to take off next year, will be powered by the token.
MATIC To Experience A 20% Increase
MATIC is currently trading at $0.41, representing a substantial decline for the cryptocurrency, which has experienced a 59% year-to-date decline. MATIC emerged from its protracted downward trajectory in July 2024, indicating the possibility of a recovery.
Technical analysis suggests that MATIC has the potential to reach $0.50, a critical level that previously provided significant support between July 2023 and August 2024, by gaining an additional 20.90%.
The Moving Average Convergence Divergence (MACD) indicator indicates that MATIC’s price is exhibiting subtle movements on the 4-hour chart, indicating positive momentum.
