Ethereum (ETH) scalability network Polygon (MATIC) is transitioning to its new POL token.
Polygon developer Polygon Labs announced the transition from its MATIC token to the new POL token back in late January, and was expected to take place Sept. 4. The migration is part of a broader transition to what the announcement describes as Polygon 2.0.
The migration to the new POL token will simultaneously phase out the old MATIC token. The new digital asset will take MATIC’s place in paying for transaction fees on the network and as the staking token for the blockchain.
Why transition?
The transition to the new POL token prepares the Polygon network for the larger changes that come as part of the transition to Polygon 2.0. The network will also shift using a zero-knowledge proof-based Ethereum virtual machine (zkEVM) and introduce interoperable application-specific blockchains.
“Polygon zkEVM Beta is the leading ZK scaling solution that is equivalent to Ethereum Virtual Machine,” The official Polygon website for the testing version of the zkEVM said. “The vast majority of existing smart contracts, developer tools and wallets work seamlessly.”
POL holders will now have an option to earn additional staking rewards by restaking their tokens to secure application-specific blockchains in the ecosystem. Future updates will leverage POL to secure other blockchains within Polygon’s “AggLayer.”
The AggLayer will aggregate zero-knowledge proofs from all the participating blockchains to allow for inter-blockchain transactions. Zero knowledge proofs are cryptographic proofs proving the validity of transactions that do not contain the data — allowing to store less data on-chain than by storing transaction data directly.
Action required by MATIC holders
On-chain MATIC holders do not need to do anything to swap their MATIC for POL and will see their holdings change. Those holding MATIC on Ethereum may need to migrate through the Polygon Portal Interface.
Those holding MATIC on the Polygon zkEVM layer-2 network or centralized exchange may need to bridge their assets to Ethereum to transition throug the same tool. There is currently no deadline for completing the swap.
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