Polygon is transitioning from MATIC to POL tokens as part of its efforts to improve network performance and advance the goals of its ambitious Polygon 2.0 roadmap.

Polygon, a top Layer-2 solution on Ethereum, is preparing for a major upgrade as it transitions from MATIC to the new POL token. This upgrade is designed to boost the network’s capabilities and support future expansions as part of the broader Polygon 2.0 roadmap, which aims to improve functionality and scalability across the ecosystem.

Automatic and Manual Token Migration Process

MATIC holders on the Polygon Proof of Stake (PoS) chain will have their tokens automatically converted to POL, with no further action required. However, those holding MATIC on platforms like the Ethereum network or Polygon’s zkEVM Layer-2 will need to manually migrate their tokens via the Polygon Portal Interface or bridge them to Ethereum.

While there’s no strict deadline for the conversion, Polygon has indicated that a timeline may be introduced later. This migration is a crucial step in establishing POL as the core asset across all of Polygon’s chains and platforms.

The Role of POL in Polygon 2.0

POL will be central to the Polygon 2.0 upgrades. Initially, it will act as the native gas and staking token on the Polygon PoS network, and over time, it will play a larger role in the network’s AggLayer, which is part of Polygon’s plan to unify multiple blockchain platforms.

By 2025, POL will also power Polygon’s new staking hub, facilitating key activities like block generation, zero-knowledge proof creation, and participation in Data Availability Committees (DACs). This highlights POL’s evolving role in ensuring the network’s security, scalability, and future growth.

New Tokenomics and Market Impact

Alongside the switch to POL, Polygon is revising its tokenomics. The POL token will have an annual emission rate of 2%, intended to reward validators and replenish the community treasury, supporting the network’s long-term sustainability.

While MATIC’s value has dipped leading up to this migration, the Polygon team is confident that the switch to POL and its associated benefits will restore investor confidence and fuel future growth.