Quick Summary
- Mainnet Upgrade Date: September 4th
- Initial Phase: POL replaces MATIC as the gas and staking token on Polygon PoS
- Future Use: POL will play a crucial role in the AggLayer
- Action Required: None for MATIC holders on Polygon PoS; possible actions for MATIC holders on Ethereum, Polygon zkEVM, and centralized exchanges
- Testnet Migration: Successfully launched on July 17th
Hey there! We have some major news for the Polygon community. The upgrade from MATIC to POL is set for September 4th. Here’s everything you need to know, explained simply.
What’s Happening?
On September 4th, Polygon’s native token will change from MATIC to POL. This upgrade has been driven by community consensus to enhance Polygon’s capabilities and future-proof the network. The main purpose is to upgrade the protocol tokens, marking a significant step toward the future of Web3.
Key Changes
- New Token: POL will replace MATIC as the gas and staking token on Polygon’s Proof-of-Stake (PoS) network.
- Future Use: POL will also support the AggLayer and other roles, making it more versatile than MATIC.
- Automatic Upgrade: If you hold MATIC on Polygon PoS, your tokens will automatically convert to POL. No action needed!
What Happens to the MATIC Token?
In short, the POL token will be replacing the MATIC token. MATIC has served as the native token of the project since its inception and has gone through a couple of soft rebrandings over these years. It has also seen extensive ownership thanks to the widespread adoption of Polygon and its projects. As shown on-chain, the MATIC token is held by over 600,000 cryptocurrency investors.
However, the upgrade to the POL token is the biggest update the token has witnessed since it was launched. This upgrade will see the whole Polygon tokenomics moved to a different smart contract to allow the token to operate within its new scope as desired. Like MATIC, the total supply of the POL token is 10 billion. The initial circulating supply is expected to be the same as the circulating supply of the MATIC token by the time the phase-out process starts.
As part of the phasing-out process for the MATIC token, MATIC holders will need to run a swap transaction to transfer their old MATIC token to the upgrade smart contract. MATIC will be swapped to POL token in a 1:1 ratio. According to Polygon, the phase-out process will last for over 4 years, providing enough time for every holder to move their token to the new contract. When this is done, the MATIC token will cease to exist. Therefore, as a MATIC holder, it is recommended that you stay up to date with new developments regarding this and complete your token swap within the specified timeline.
What Do MATIC Holders Need to Do?
- On Polygon PoS: Nothing! Your MATIC will automatically become POL.
- On Ethereum, Polygon zkEVM, or Centralized Exchanges (CEXes): You may need to migrate your tokens. Look out for specific instructions from your exchange or follow the steps below:
- Migration Contract: Use the contract on Ethereum to upgrade your tokens.
- DEX Aggregators: Use platforms like 1inch, Kyber, or CowSwap if you prefer not to use the contract directly.
For Developers and DeFi Users
- On Polygon PoS: Liquidity pools will switch to POL automatically. Ensure your price oracles and front-end displays reflect this change.
- On Ethereum and zkEVM: Update your smart contracts and infrastructure to support POL.
What About Security?
To ensure everything runs smoothly, the POL upgrade has been tested on a testnet since July 17th. This helps catch any issues before the mainnet launch.
Detailed Steps for Different Users
- MATIC Holders on Polygon PoS: No action required; automatic upgrade.
- MATIC Holders on Ethereum: Use the migration contract or DEX aggregators to upgrade.
- MATIC Holders on zkEVM: Either bridge to Ethereum and follow the Ethereum instructions or use zkEVM-based DEXs.
- Centralized Exchanges: Check your exchange’s FAQs for their specific process.
- Liquid Staking Providers and Users: Be aware of potential temporary suspensions around September 4th for the upgrade.
- Wallet Providers: Update token symbols from MATIC to POL.
- RPC Providers: Change settings to recognize POL as the native token.
- Bridges: Ensure they are ready to handle POL as the main asset.
