Polygon, a layer-2 network on the Ethereum blockchain, will activate an upgrade on Wednesday that swaps out its longstanding MATIC token for a new POL token. The migration to POL from MATIC will also bring in some tokenomics changes with a new emission rate of 2% annually.

The planned switchover has been well-telegraphed, and the changeover could be closely monitored, as MATIC is the 13th biggest token by market capitalization in the CoinDesk 20 index of large digital assets, at about $3.8 billion. For many users, the swap will take place automatically as part of Polygon's "Polygon 2.0" roadmap to make POL the native token of its main chain and eventually other chains in its ecosystem.

According to Polygon, in the initial phase of the migration, "POL replaces MATIC as the native gas and staking token for the Polygon PoS network." In subsequent phases, POL will serve a crucial role in the AggLayer, a system for aggregating affiliated blockchains built using Polygon technology. The Polygon community has also proposed that "POL will support broader roles in the Polygon staking hub (to be released in 2025), including block generation, zero-knowledge proof generation and participation in Data Availability Committees (DACs)."

Source: https://www.coindesk.com/tech/2024/09/03/polygon-to-start-much-awaited-swap-of-pol-token-for-longstanding-matic/

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