Polygon kicks off the layer-2 Ethereum token’s transition from MATIC to POL
Polygon has commenced the migration of its MATIC token to the new POL token, which represents a significant milestone in the evolution and administration of Ethereum’s layer-2.
Polygon, one of the most prominent layer-2 networks on Ethereum, is presently enduring one of its most significant transformations, as the world of cryptocurrencies is constantly developing.
The network has indeed implemented a critical update that transitions from the long-standing MATIC token to the new POL token.
Although widely anticipated, this action signifies a substantial turning point for the Polygon network and the entire criptovalute ecosystem.
The transition from MATIC to POL is not a straightforward update; rather, it is an event that has the potential to significantly impact the network’s operations.
The primary token of the Polygon PoS chain, the main chain of Polygon, and other chains within its ecosystem is to be POL.
POL will replace MATIC as the native gas and staking token for the Polygon PoS network during the initial phase of this migration, a critical function that will underscore its increasing significance.
This modification is a component of the “Polygon 2.0” roadmap, a comprehensive initiative that was unveiled last year with the objective of enhancing and consolidating the network’s capabilities.
POL will not only serve as a substitute for MATIC, but it will also serve as a fundamental component of numerous sophisticated functions that the network will implement in the years ahead.
The network’s tokenomics will undergo substantial modifications as a result of the transition from MATIC to POL. The introduction of an annual emission rate of 2% will be one of the primary innovations, marking a substantial departure from the previous model.
The community treasury and network validators will each receive a portion of this new issuance. This “self-sustaining ecosystem fund” will assist network development and expansion to ensure Polygon’s long-term survival.
Marc Boiron, CEO of Polygon Labs, clarified that the primary reason for this upgrade is the technical constraints associated with the MATIC update keys, which were burnt years ago.
This circumstance has rendered it impossible to implement modifications to MATIC, necessitating the network to implement a new token that would allow for increased adaptability and flexibility.
Boiron posits that the introduction of emissions through POL will not only fortify the ecosystem but also provide the community with a greater sense of control over resources, enabling them to actively engage in the network’s expansion.
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