Polygon, a key player in crypto, is gearing up for a major upgrade on September 4th. This upgrade will replace the existing MATIC token with a new POL token. The move is not just about swapping tokens—it signals a major shift in how the Polygon network operates.
The upgrade, first introduced last year through community-driven proposals, is designed to enhance Polygon’s utility and performance. The community recognized the need for a token that could do more, aligning with Polygon’s growing vision as a network that supports multiple interconnected chains. This led to the development of POL, a token set to power Polygon’s expansion.
At first, POL will take over as the native gas and staking token on the Polygon Proof-of-Stake (PoS) network. Starting September 4th, all transactions on Polygon PoS will be processed using POL, making it a key part of the network’s operations. For users holding MATIC on Polygon PoS, the transition will be automatic—there’s no need to take any action. But those holding MATIC on Ethereum, Polygon zkEVM, or CEXs might need to follow specific steps to upgrade their tokens.
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In later phases, POL will play a crucial role in what’s called the Aggregation Layer, or AggLayer. The AggLayer is a new technology built by Polygon to address some of the biggest challenges in web3 today, like fragmented liquidity and poor user experience. Imagine a world where different chains can interact as if they were part of a single, unified system—that’s what the AggLayer seeks to achieve.
The AggLayer works by aggregating Zero-Knowledge (ZK) proofs from all connected chains, allowing them to interact securely and efficiently. This means different chains within the Polygon landscape can share resources and liquidity. For developers, this opens up new avenues for creating dApps that can tap into a wider network.
Notably, the upgrade marks an exciting change for web3 gaming. Polygon is already a major hub for on-chain gaming, with notable titles like Aavegotchi, Arc8, and The Sandbox thriving on its network. The new POL token, combined with the AggLayer, will make it even easier for these games—and new ones—to offer smooth, low-cost transactions. Players could soon enjoy a more connected gaming experience where assets and currencies can move seamlessly between platforms.
The AggLayer will also simplify the user experience. For instance, once a user is connected to one chain within the AggLayer, they’re effectively connected to all chains in the network. This means less hassle with bridging assets between chains, which can often be a slow and costly process.
First deployed as Matic Network, Polygon was founded in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. Initially, it aimed to solve Ethereum’s scalability issues by offering a layer-2 scaling solution. The project rebranded to Polygon in 2021, expanding its vision beyond simple scaling to becoming a multi-chain network on Ethereum.
Polygon’s rise to prominence in web3 gaming can be attributed to several factors. First, its ability to provide faster transactions at lower costs than Ethereum made it an attractive option for game developers. The network supports various types of crypto games, making it a popular choice for on-chain gaming.
In 2023, Polygon launched the zkEVM mainnet, a major step that allows Ethereum-based smart contracts to scale more effectively. This technology batches multiple transactions into a single proof, which is then posted on Ethereum, drastically reducing costs and increasing throughput. Later, Polygon launched Polygon 2.0, which aims to unify its various products using ZK-proof technology.
With that, the shift from MATIC to POL highlights Polygon’s long-term vision. As the blockchain space evolves, the need for networks that are scalable and interoperable becomes more critical. The POL token and the AggLayer are Polygon’s answers to these challenges. By making it easier for different platforms to work together, Polygon is paving the way for a more efficient web3 landscape.
