On September 4, the Polygon (CRYPTO:MATIC) network will undergo a major upgrade, transitioning its current token MATIC to a new token POL.
This upgrade aims to improve the network’s functionality and broaden the utility of the token within the Polygon ecosystem.
In the first phase, POL will replace MATIC as the primary token for gas fees and staking on the Polygon PoS network, following a series of community-driven Polygon Improvement Proposals (PIPs).
The transition will be automatic for MATIC holders on the Polygon PoS network, requiring no action from them.
However, holders of MATIC on Ethereum (CRYPTO:ETH), Polygon zkEVM, or centralised exchanges (CEXes) will need to migrate their tokens.
Ethereum holders can use the provided migration contract or decentralised exchange (DEX) aggregators to convert MATIC to POL.
Similarly, Polygon zkEVM holders can bridge their MATIC to Ethereum or use zkEVM-based DEXs.
CEX users should follow their exchange’s specific migration guidelines.
For stakers and delegators of MATIC on Ethereum, their staked tokens will automatically convert to POL, ensuring staking rewards continue without interruption.
To prepare for the transition, a testnet migration was launched on July 17, 2024, to identify and address any potential issues before the mainnet upgrade.
Developers, DeFi protocols, and infrastructure providers are advised to familiarise themselves with the upgrade process and update their systems accordingly.
DeFi protocols will need to transition to POL price oracles and update smart contracts, while oracles and wallet providers must adjust their systems to support POL.
This migration represents a significant advancement for the Polygon network, enhancing its capabilities and aligning with its vision of a multi-chain ecosystem.
Stakeholders are encouraged to stay informed through Polygon’s official channels for the latest updates and instructions leading up to the transition on September 4.