Polygon Labs has revealed a comprehensive plan to transition from its current token, $MATIC, to a new token named $POL.
This transition is part of a broader roadmap aimed at scaling Ethereum by connecting multiple chains horizontally on top of the Layer 1 blockchain.
The migration is set for 4 September, marking a significant milestone in Polygon’s journey towards becoming a multichain ecosystem with enhanced scalability and functionality.
The $POL migration represents the first phase of $MATIC’s evolution into what Polygon Labs describes as a “hyperproductive token”.
This new token will enable holders to stake and validate transactions across multiple chains within Polygon’s aggregated blockchain network, earning rewards in the process.
Initially, $POL will replace $MATIC as the native gas and staking token for the Polygon Proof-of-Stake (PoS) network.
One of the key differences between $POL and $MATIC is that $POL is an inflationary token, with its supply increasing by 2% annually.
This is a strategic move to support the token’s scalability and facilitate an infinite number of chains. In contrast, $MATIC has a capped supply of 10 billion tokens.
Migration process for MATIC holders
To ensure a smooth transition, Polygon developers have outlined detailed steps for $MATIC holders to migrate to $POL.
If users hold their $MATIC on the Polygon PoS network, they won’t need to take any action for the upgrade, as their tokens will be automatically upgraded to $POL.
However, if they will need to update the RPC settings in your wallet to reflect the ticker change from $MATIC to $POL.
For example, in MetaMask, one can do this by going to settings, selecting networks, and changing the “Currency symbol” field from “MATIC” to “POL”.
For $MATIC holders on Ethereum, the migration to $POL can be done using the token migration contract on Etherscan.
If interacting directly with smart contracts seems daunting, Polygon Labs recommends swapping their $MATIC tokens for $POL through a decentralised exchange (DEX) aggregator.
On the Polygon zkEVM, $MATIC holders have two options: they can either bridge their tokens to Ethereum and use the migration contract or swap their tokens using a local DEX.
This flexibility ensures that users can choose the method that best suits their technical comfort level.
For those holding $MATIC on centralised exchanges, it is likely that each exchange will provide specific guidelines for the $POL migration.
However, most exchanges are expected to handle the upgrade automatically, requiring no action from the users.
To facilitate a seamless transition, Polygon Labs has already launched the $POL upgrade on testnet.
This allows users and developers to familiarise themselves with the migration process ahead of the mainnet upgrade in September.
Strategic collaboration with Google Cloud
In parallel with the token migration, Polygon Labs has announced a strategic partnership with Google Cloud and Accenture.
This collaboration aims to revolutionise loyalty programs through Web3 solutions, enhancing user experiences and creating new revenue streams for brands.
The partnership focuses on transforming consumer interaction with brands by introducing advanced digital rewards and new modes of engagement.
A recent joint white paper highlights how Web3 solutions can enhance existing loyalty programs by offering rewards such as tokenised privileges, gamification, collectibles, and community-generated content.
This approach not only improves the user experience but also creates new revenue opportunities for businesses.
A crucial aspect of this collaboration is the emphasis on privacy-preserved data sharing. The “multiplayer commerce” model supports the secure exchange of customer loyalty status on a protected data layer, accessible to complementary brands and partners.
This model uses zero-knowledge proofs to allow access to relevant data without revealing sensitive information, thereby enhancing the security of customer data.
Leading brands like Nike, Flipkart, and Nubank are already adopting these innovative Web3 solutions.
For example, Flipkart has seen a significant increase in user interaction, with 95% participation in missions and a 23% rise in prize redemptions through the Hangprogram on Polygon.
