Polygon 2.0 Witnesses Milestone: POL Contracts To Replace MATIC On Ethereum Mainnet

Polygon Labs MATIC/USD wants an updated roadmap with the new POL token replacing the MATIC token.

The company clarifies that this has no relation to the recent events in the regulatory environment related to the MATIC legal status.

What Happened: Polygon deployed its next-gen cryptocurrency POL on a testnet in early October. Now, it's deploying contracts on the Ethereum mainnet. This token is an evolution of MATIC, and it looks to align with the architecture of the upcoming Polygon 2.0 upgrade.

Price Action: MATIC in the past 24 hours has seen a drop of 33.9% in its trading volume while the price of the token is down around 1% at the time of writing.

The upgrade involves the following steps, launching a new staking layer to fuel Polygon Layer 2 chains, transitioning Polygon proof-of-stake to zkRollup, and implementing a ZK-powered interoperability and shared liquidity protocol for all the Layer 2s.

Also Read: Google Cloud Joins The List of 100-Plus Validators On Polygon's Network

Find out more about the Polygon network and its token Meet and engage with other transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!  The token will not replace MATIC immediately. Replacement needs to have governance approval and will be synchronized with the rollout of the Polygon 2.0 upgrade. MATIC holders will have four years to migrate their holdings to the new token.

This development comes on the heels of a series of approved Polygon Improvement Proposals in September which detailed POL token specifications.

Why It Matters: POL will now serve as the main cryptocurrency for the Polygon 2.0 ecosystem, supporting an ecosystem of zero-knowledge-based Layer 2 chains and including features such as staking, community ownership, and governance.

“POL, a next-generation hyperproductive token, will power a vast ecosystem of zero knowledge-based Layer 2 chains via a native re-staking protocol that allows POL holders to validate multiple chains and perform multiple roles on each of those chains,” Polygon Labs said in a statement on its blog.

This step will enable POL to function as a single token for all Polygon-based networks including the main Polygon blockchain, the Polygon zkEVM network, and various supernets like application-specific blockchains that run over the main Polygon network.

Benzinga's Future of Digital Assets conference is scheduled in New York on Nov.14. Attend and learn more about the Ethereum mainnet and the various tokens operating on it. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

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