A group of Polygon founders and researchers proposed a token upgrade that would replace the network's MATIC token with POL in a move that lets POL function as a single token for all Polygon-based networks.
These networks include the main Polygon blockchain, the Polygon zkEVM network, and various supernets – application-specific blockchains that run atop the main Polygon network.
The proposal lifted MATIC, which added as much as 2.6% to $0.747 in the first three minutes after the announcement.
If the proposal is accepted, network validators will be able to support the operation of multiple chains using a single token.
The upgrade to POL from MATIC requires a simple technical action – sending MATIC to the upgrade smart contract, which will automatically return the equivalent amount of POL. Token holders would be given ample time to upgrade, a proposed four years or more, if the community supports the move.
Every Polygon chain’s community will ultimately decide which token their chain will use for gas fees; some of them might choose POL. Holders will use POL to vote on governance proposals for decentralized applications built on Polygon, and all rewards will be distributed in POL.
UPDATE (July 13, 9:45 UTC): Adds token reaction in third paragraph.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.