Polygon Labs has taken a huge step toward realizing Polygon 2.0. The scaling technology firm has successfully launched smart contracts of the project’s next-generation token, POL, on Ethereum.
The Polygon 2.0 roadmap entails a token switch from MATIC to POL.
POL Token Contracts Debut On Ethereum
Polygon Labs revealed in an October 25 press release that the POL token has gone live on the Ethereum mainnet.
Crucially, POL is an upgrade from the MATIC token, which will be deprecated as part of the move. MATIC token holders will have roughly four years to transfer their holdings to the new token.
“Today marks a major milestone on the Polygon 2.0 journey toward building the Value Layer of the Internet. The upgrade to POL has been initiated on the Ethereum mainnet, after months of development, community consultation, and a successful testnet launch,” Polygon Labs stated in the official announcement.
Polygon Labs first announced POL in July 2023, and it expects it to work as a multipurpose token and play a key role in the network’s broader 2.0 upgrade.
In September, Polygon released three inaugural Polygon Improvement Proposals (PIPs) for community consideration and voting. The PIPs outline technical details for “Phase 0, which includes a proposal for the transition and specifications that will see MATIC become POL.
The Polygon 2.0 vision paints a picture of multiple Polygon-based chains, bridges, and the implementation of privacy-enhancing zero-knowledge (ZK) proofs to validate all transfers. POL, a next-generation hyperproductive token, will power all Polygon-based networks: the main Polygon blockchain, the Polygon zkEVM network, and various supernets.
To help secure all these layers, POL will reportedly allow users to stake their holdings across as many compatible chains as they want. This suggests that users start accruing protocol rewards and transaction fees on each staked chain as soon as they deposit their holdings.
It’s worth mentioning that the POL token will not immediately replace MATIC despite the deployment on the Ethereum mainnet.
Is MATIC Set For Major Surge?
In terms of what comes next on the Polgyon 2.0 roadmap, Polygon has hinted at transitioning its proof-of-stake chain to a zkRollup as well as implementing a new ZK-powered interoperability and shared liquidity protocol for its multiple chains.
The price of MATIC gained 25.3% in the last week, indicating investors are ready to snap up tokens with positive fundamental developments that promise increased use cases. The token is up 2.8% on the day, currently trading hands at $0.6456, according to CoinGecko data.
MATIC is still down 77.92% from its December all-time high of $2.92, although the team has been consistently delivering the necessary updates and improvements to the Polygon network. It’s worth noting that mainnet and protocol updates tend to cause bullish price action.
Investors will be closely monitoring the progress of the Polygon 2.0 roadmap following the launch of POL.