Polygon recently announced the long-awaited transition or upgrade from the current MATIC token to a new POL token. The proposed change was first suggested to the community in July last year. POL will serve as the primary token for all Polygon networks after the migration.
As per the Polygon team’sannouncementon July 18th, the highly anticipated move from MATIC to POL is scheduled for September 4. Initially, POL will replace MATIC as the native staking and gas token for the ecosystem. In subsequent phases, it will play a vital role in the AggLayer, which seeks to integrate various Polygon-based blockchains into a seamless, interconnected network.
So, what’s new?
While individuals holding MATIC on the Polygon blockchain and wishing to exchange it for POL won’t have to take any steps, those holding it on the Ethereum Mainnet or centralized exchanges may need to transfer.
On Wednesday, July 17, Polygon activated a migration contract that allows holders to swap tokens on Ethereum without requiring permission. MATIC delegators and stakers on Ethereum are also not required to take any action.
It’s worth noting that Polygon decided to make POL its new native token because it claims to have better utility and functionality than the existing MATIC. POL aims to support more diverse use cases, including staking, governance, and transaction fees.
Moreover, the POL token is part of a broader upgrade to the Polygon protocol, which aims to improve scalability and efficiency. This upgrade is expected to support more advanced features and enable the Polygon network to handle more transactions more effectively.
Polygon aims to realign incentives in its ecosystem by introducing a new token, POL. This encourages active participation from validators, developers, and users, fostering a stronger community.
Will MATIC and POL start gaining?
Both tokens are still struggling despite the news and the hopes. According to CoinGecko, the current price of POL is 57.81% lower than its all-time high. The coin’s value has decreased by 2.2% today and 2.8% over the past month. As it was launched less than a year ago, there is no yearly data available.
MATIC is not performing any better. Its current price is 81.38% lower than its all-time high. It has experienced a 2.7% loss in value today and a 29% decrease over the past year.
Based on all technical indicators, MATIC is considered a “sell,” while POL is labeled as a “strong sell.” In summary, the outlook for both MATIC and POL is bearish. However, the price of POL might improve once it starts its wide-ranging utilities within the Polygon ecosystem.
