Polygon, one of the leading blockchain networks, has upgraded its MATIC token to a new version called the Polygon Ecosystem Token (POL). This upgrade is part of the transition to Polygon 2.0 and aims to make POL a more versatile and valuable asset for its users. The upgrade took place on September 4, and MATIC holders received POL tokens on a 1:1 basis.
POL now serves as the network’s native gas and staking token, providing more opportunities for community engagement and rewards.
According to Marc Boiron, CEO of Polygon Labs, this upgrade introduces a 2% emissions rate, which allows the community to earn rewards through participation in the network. Even though the full migration has not been completed, the emissions introduced in “season 1 of the community grants program” are already providing benefits to users. This marks a step toward more decentralized community involvement in the network's growth.
The key feature of this upgrade is what Boiron calls the transformation of POL into a “hyperproductive” token. Unlike MATIC, which only earned rewards from gas fees and staking, POL will generate fees from a broader range of activities. This includes securing data availability and decentralizing the network’s sequencers. More fee-earning opportunities will be added in the future, making POL more productive than previous tokens. Boiron also described this as a significant step beyond Ethereum’s ETH, which mainly generates fees from gas transactions.
For MATIC holders, there’s no need to worry about immediately upgrading their tokens. Staked MATIC will be automatically converted into POL without any additional action. The technical migration has already been tested successfully, and the full migration process is now underway.
Additionally, POL will play a crucial role in Polygon’s AggLayer, a layer designed to connect different blockchains and enable cross-chain interoperability. This is a core part of Polygon’s broader vision for Polygon 2.0, which aims to offer "infinite scalability" and unite various blockchains, including major networks like Ethereum and Bitcoin.
With these upgrades, Polygon is positioning itself as a major player in the next phase of blockchain development, offering users more utility and earning potential from their tokens.
