The team migrated the POL token contract to the Ethereum network, clearing the way for it to replace MATIC in the future.
Polygon Labs announced the launch of the Ethereum contract for the new Polygon currency, POL, on October 25. The new coin is designed to replace the ecosystem's current token, MATIC MATIC $0.6552. However, the company stated that consumers do not now need to exchange their MATIC for POL.
The new token was created on October 25 at 9:06 a.m. UTC, according to blockchain data. It is officially known as the "Polygon Ecosystem Token." The Polygon team said in the launch that POL will "power a vast ecosystem of zero knowledge-based Layer 2 chains" by developing a "re-staking protocol" that allows token holders to stake it on various chains while fulfilling multiple activities.
The launch of the token will now pave the way for other aspects of the Polygon 2.0 roadmap to be implemented, including the creation of a new staking layer for the Polygon ecosystem, upgrading the current proof-of-stake (PoS) network to zkEVM layer-2, and developing a shared liquidity protocol for all Polygon networks, according to the post.
The team emphasized that POL is not yet being used for any systems in the Polygon network. Staking on both Polygon PoS and Polygon zkEVM is still done with the old token, MATIC, and gas fees on the PoS network are still paid with MATIC. As a result, users, validators, and app developers do not need to switch their MATIC for POL at this time.
Polygon Labs first announced the development of a new layer-2 ecosystem on June 29. It dubbed the new environment "Polygon 2.0." On September 14, the team revealed that Polygon 2.0 would use a new cryptocurrency, POL. However, at the time, the coin was only a proposal and had not yet been implemented on Ethereum.
Polygon's proposed layer-2 ecosystem will validate network transactions using zero-knowledge proofs. It will be challenged by Optimism Labs' proposed Optimism ecosystem, which will use optimistic roll-up technology to encrypt messages between networks.
Polygon's announcement of the POL token and its deployment on Ethereum underscores the project's commitment to enhancing its ecosystem's capabilities and interoperability. As the blockchain industry continues to evolve, solutions like Polygon play a crucial role in connecting different networks and optimizing blockchain technology for a wide range of use cases. The transition from MATIC to POL signals a new phase in Polygon's growth, promising a more interconnected and efficient blockchain ecosystem for the future.