Polygon to Initiate Migration from MATIC to POL: Key Implications for Users

Coinspeaker
Polygon to Initiate Migration from MATIC to POL: Key Implications for Users

Polygon, a leading Ethereum Layer 2 scaling solution, is set to undergo a significant upgrade as it transitions from its long-standing MATIC token to the new POL token.

This migration, starting today, is a key component of Polygon’s broader strategy outlined in its Polygon 2.0 roadmap.

The transition from MATIC to POL is designed to improve the network’s efficiency and flexibility. POL will take over from MATIC as the main token used on Polygon’s Proof of Stake (PoS) chain. It will handle tasks such as paying for gas fees and staking. This change supports Polygon’s goal to integrate with its zero-knowledge Ethereum Virtual Machine (zkEVM) and AggLayer, which aims to connect different blockchain systems using Polygon’s technology.

Several changes are expected to take effect. A key update is the new yearly emission rate of 2%. These emissions are geared towards incentivizing validators on the network and supporting its growth. POL will also support various functions in the network, such as block creation and  zero-knowledge proofs (ZKPS) generation. In addition, POL will be instrumental in the network’s Data Availability Committees (DACs). These roles are crucial for enhancing Polygon’s technology and expanding its capabilities.

MATIC held on centralized exchanges (CEX) will automatically be swapped for POL. Similarly, MATIC held on the Polygon’s PoS chain will be converted to POL without any action required from holders. This method is intended to make the transition easy and straightforward.

However, MATIC on the Ethereum network or Polygon’s zkEVM layer 2 must be transferred manually. This can be done via the Polygon Portal Interface or by bridging them to Ethereum. A migration contract is already in place to facilitate the transition from MATIC to POL on Ethereum. However, Polygon advises that this process is intended for experienced users only.

There isn’t a specific deadline yet, but it’s advisable to complete the transfer soon to prevent any problems. Polygon will provide further guidance as necessary.

MATIC’s price has dropped by 7% in the past 24 hours, trading at 0.3773 at the time of press. This drop might be due to broader market trends or reactions to the migration. MATIC’s RSI stands at 34.97, indicating a neutral position. This suggests that the asset is neither in overbought nor oversold territory, reflecting a balanced market sentiment. The moving averages across various timeframes are uniformly signaling a bearish trend, while the MACD, currently at -0.0180, signals a sell signal.

The combined technical analysis suggests that caution is warranted, as the indicators collectively point to a weaker market condition for MATIC. The Polygon community is watching closely to see how these changes will affect the network’s performance, user experience, and price trajectory of the new token.next

Polygon to Initiate Migration from MATIC to POL: Key Implications for Users