Polygon team proposes converting MATIC tokens to POL

Polygon Labs presented the tokenomics parameters for the next iteration of the eponymous Ethereum-layer-2 network. One of its steps is to replace the utility tokens MATIC with Polygon (POL).

The proposal requires community approval. Depending on consensus, the transition could begin within a few months.

The update’s primary aim is to ensure the ecosystem’s scalability without compromising security.

The proposed POL token is designed to operate across all blockchains in the ecosystem, including the PoS sidechain, zkEVM and Supernets, explained by a team representative.

In other words, validators will be able to secure transactions across multiple networks.

POL is a next-generation protocol token designed as the primary instrument for coordinating and growing the Polygon ecosystem, and a driver for realising the value layer vision for the internet.

According to the document, the asset will become a ‘hyper-productive token’. Applied to validators, the term implies two improvements:

• ecosystem participants can operate across several networks at their discretion;
• in each blockchain they can perform multiple functions.

The advantages of moving to a single utility token for the Polygon ecosystem will include:

• enhanced security;
• unlimited scalability;
• a built-in mechanism to support ecosystem participants;
• the prerequisites for a seamless user- and developer-friendly interaction with the blockchain;
• a shift to community-led project governance.

For validators, POL will generate three revenue streams in the form of transaction fees, protocol rewards, and additional bonuses from subnets (where applicable).

Technical details of the POL smart contracts and migrations will be presented by the developers in the forthcoming PIP.

Conversion is expected to proceed without friction — holders of MATIC will be invited to send tokens to a designated smart contract, which will then return an equivalent amount of POL.

The process will span at least four years to adapt to the new token.

At the protocol level, POL will replace MATIC. The two assets will not be in circulation simultaneously.

Back in June, Polygon Labs revealed the proposed Polygon 2.0 architecture.