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Polygon POL Token: Introduction to Polygon Ecosystem Token

November 21st 2023

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With the crypto market coasting to the upside, new tokens, ecosystems, and applications are constantly arriving on the scene in an attempt to catch the next big wave. But amidst the noise and hype, there is one powerhouse project that is bringing a new token to market to make a lasting impact and change the Web3 landscape for good. 

Polygon, Web3’s leading Layer 2 scalability stack, recently announced the release of POL, a new token poised to support its forthcoming ecosystem. As the ecosystem's next-generation token, Polygon POL holds the key to unlocking the full potential of Polygon 2.0, a groundbreaking roadmap for scaling Ethereum and building what Polygon calls the “Value Layer of the Internet”. 

For those that understand the POL token and its role within Polygon 2.0 early on, opportunities will abound in the next big market cycle.

POL: A Powerful Token for a Powerful Vision

Polygon POL is an ERC20 token, which will be migrated from MATIC, whose advanced specifications enable the development of a next-generation Layer 2 ecosystem on Polygon’s unrivaled scalability architecture. Polygon is already Web3’s performance leader amongst all EVM chains, and its newest mission is to design an operating environment with adequate versatility and customisation potential to support and connect a diverse range of unique applications designed for specific use cases. 

Polygon POL will allow users to validate and perform various roles across multiple chains, contributing to a superior consensus. Even more importantly, the POL token will play an integral role in the formation of Polygon 2.0, an ecosystem designed to consolidate Web3’s fragmented and disjointed communities.

Consolidating Web3: The Rise of Polygon 2.0

Polygon 2.0 represents a major milestone in the evolution of the Polygon ecosystem and the Web3 space at large. Designed to consolidate all interconnected Polygon-based Web3 protocols and communities, Polygon 2.0 aims to achieve unlimited scalability and unified liquidity while harnessing the benefits of Ethereum’s decentralised and censorship-resistant execution environment. 

Polygon 2.0 will utilise the POL token to power a vast ecosystem of zero knowledge-based Layer 2 chains, all of which will be tied together by a series of powerful features. The POL token will enable a brand new staking layer by which users will power Polygon Layer 2 solutions to earn rewards, as well as a shared liquidity protocol. More powerful still, the POL token will enable Polygon PoS to undergo a zkRollup upgrade that will enhance its scalability and privacy, while a sophisticated interoperability and shared liquidity protocol will facilitate seamless cross-chain interactions in Polygon 2.0.

Upgrading to POL: A Seamless Transition

Although Polygon POL is live and trading on various exchanges, it is not being used by any applications within the Polygon ecosystem at the moment. Staking on both Polygon PoS and Polygon zkEVM is still performed using MATIC, and gas fees on the PoS network are paid in MATIC as well. As such, MATIC holders and stakers do not need to do anything for the time being.

As the Polygon ecosystem evolves, the transition from MATIC to POL will present an opportunity for token holders to engage the enhanced features and benefits of Polygon POL. Upgrading from MATIC to POL is a straightforward process that involves sending MATIC to a new smart contract to receive POL. Holders of MATIC tokens will have ample time – at least four years – to upgrade their tokens to Polygon POL and begin participating in new and exciting developments in the Polygon ecosystem.

A Bright Future: Polygon's Holistic Ecosystem

The introduction of the POL token is just one piece of the puzzle in Polygon's holistic ecosystem. With Polygon 2.0 at its core, Polygon aims to revolutionise the way individuals and organisations interact with decentralised networks, enabling users to experience the benefits of a highly unique single chain without forgoing the aggregate security, liquidity, and robustness of a powerful global network. The Value Layer of the Internet will be built on the foundation of Polygon's zero-knowledge-based Layer 2 chains, creating a deeply integrated ecosystem that enhances privacy, reduces transaction costs, and fosters cross-chain interoperability.