Polygon has just made a new announcement regarding the continuation of the innovation narrative into Polygon 2.0, which was announced in June 2023. This announcement provides some explanations about what will happen, including the migration from the MATIC token to a new token called POL.
Polygon Token Migration from MATIC to POL
On September 14, 2023, Polygon made a publication across all its social media platforms regarding the development of Polygon 2.0. The narrative of ecosystem changes that has been announced since June 30, 2023, has finally yielded results in the form of the launch of three Polygon Improvement Proposals, with the main focus being on the POL token.
It is reported that Polygon will undergo a token migration, where the primary token of its ecosystem will change from MATIC to POL.
This announcement marks the beginning of phase zero implemented by Polygon, extending until the end of 2023 as the initial step in transitioning to Polygon 2.0.
According to the information circulating, this token transition will be completed in the fourth quarter of 2023 or by the end of this year. In the future, the exchange rate between MATIC and POL will be one-to-one, where 1 MATIC will be equivalent to 1 POL. The existence of the POL token will render MATIC obsolete because all transactions within the Polygon 2.0 ecosystem will utilize POL.
The primary reason for issuing POL and discontinuing the use of MATIC is that the Polygon team wishes to embark on a new era of full innovation, thus opting for a new token within its ecosystem.
Furthermore, according to the Polygon team, POL will facilitate integration across both the new and existing ecosystems that will emerge with the changes in Polygon 2.0.
According to the information circulating, the initial supply of POL in circulation will be 10 billion POL, with its supply increasing by approximately 2% annually. This increase will be evenly distributed between validators as staking rewards and the community reserve or treasury.
Launch of Polygon Improvement Proposals in Late 2023
All of this information is detailed in three Polygon Improvement Proposals (PIPs) published on the official Polygon website.
There are three PIPs: PIP 17, PIP 18, and PIP 19, each of which explains what will happen with POL and the changes to the Polygon 2.0 network ecosystem.
PIP 17 explains the migration process from MATIC to POL, including the smart contracts that will handle the migration process, the distribution of supply, and the initial supply.
PIP 18 explains the disappearance of MATIC and the transformation of the Polygon 2.0 network transaction ecosystem with the POL token. Some of these explanations include how all transaction fees within the Polygon 2.0 network ecosystem will use POL, details about staking POL to become a validator, and the initial stages of the migration from MATIC to POL. Additionally, there is an explanation of how Polygon will launch a dedicated staking network layer and transition from the staking layer in Polygon to the staking layer in Polygon 2.0.
Finally, PIP 19 explains the transition of the Polygon 2.0 network from using MATIC as transaction fees to using POL as transaction fees.
With the publication of several PIPs, Polygon once again emphasizes that the transition plan has been carefully considered, and there will be several changes within the Polygon network ecosystem itself.
Firstly, there is a focus on the zkEVM system for Polygon 2.0 compared to the current Polygon network, which uses a Proof of Stake system. Although it still maintains a Proof of Stake nature due to the staking mechanism for becoming validators within its network, Polygon 2.0 will prioritize a Zero Knowledge mechanism based on the Ethereum Virtual Machine. This mechanism is designed to enhance the quality of the Polygon network, enabling faster transactions with lower costs while remaining compatible with the Ethereum ecosystem.
Additionally, alongside the launch of tokens that will be compatible with the zkEVM mechanism, Polygon 2.0 will introduce a Chain Development Kit (CDK). This CDK functions similarly to a Software Development Kit commonly used by developers to build applications. However, in the CDK developed by Polygon 2.0, developers aiming to create layer-two blockchains with the zkEVM mechanism of Polygon 2.0 will have a guide that streamlines the blockchain creation process, making it faster and more accessible without starting from scratch.
Overall, this news has generated positive sentiment within the Polygon ecosystem, as it receives strong support from the community.
