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Polygon, the largest Ethereum scaling solution has announced a significant update for its network, marking the transition from MATIC to POL tokens as its native asset. Scheduled for September 4, this migration will replace MATIC with POL, playing a crucial role in the Polygon ecosystem, including its position within the AggLayer.
MATIC to POL Migration
Polygon, a leading blockchain platform, has confirmed that POL will serve as the new gas and staking token for the Polygon PoS (Proof-of-Stake) network, taking over from MATIC. This change aims to enhance the network’s functionality and support future developments within Polygon’s growing ecosystem.
MATIC holders across various platforms, including Ethereum, Polygon zkEVM, and centralized exchanges (CEX), will need to take steps to migrate their tokens to POL. However, they will receive new POL tokens on a 1:1 basis, keeping the total supply unchanged.
The process is essential for continued participation in the network’s staking and transaction activities, aligning with the platform’s evolving infrastructure. It is expected to enhance the efficiency and scalability of Polygon’s operations.
Role of POL in the AggLayer
Introducing POL is not just a token swap but a strategic move to strengthen Polygon’s AggLayer, an integral component of the network’s scaling solutions. AggLayer aims to create a unified ecosystem of networks using the Polygon Chain Development Kit (CDK), avoiding the centralization and security risks linked with typical centralized bridges.
Polygon stated that POL will play a “crucial role” in the multi-chain AggLayer ecosystem, pending community governance. The token is set to power Polygon’s upcoming Staking Hub, anticipated to launch next year.
MATIC To Surge By 20%
MATIC is currently trading at $0.41, down 59% year-to-date, marking a substantial decline for the cryptocurrency. In July 2024, MATIC broke out of its long-standing downtrend, showing signs of potential recovery.
Technical analysis indicates that MATIC may gain another 20.90%, potentially reaching $0.50, a key level that previously served as strong support between July 2023 and August 2024.
On the 4-hour chart, MATIC’s price shows subtle movements, with the Moving Average Convergence Divergence (MACD) indicator suggesting positive momentum.