Polygon Labs has introduced an Ethereum contract for their new token, POL, as announced on October 25. This token is set to replace the existing MATIC token within the Polygon ecosystem. Notably, the transition from MATIC to POL is not immediately required for users, indicating a smooth transition.
On October 25, at 9:06 AM UTC, the Polygon Ecosystem Token, known as POL, was officially created. The Polygon team has described POL as a token that will play a central role in empowering a vast array of zero-knowledge layer 2 chains. This will be achieved through the implementation of a "re-staking protocol," enabling token holders to stake their holdings across multiple chains while engaging in a variety of associated functions.
The introduction of POL serves as a key milestone in the Polygon 2.0 roadmap. This roadmap includes launching a new staking layer for the Polygon ecosystem, upgrading the existing proof-of-stake (PoS) network to a zkEVM layer 2, and establishing a shared liquidity protocol for all Polygon networks. Currently, POL is not in active use within the Polygon network. Staking on the Polygon PoS and Polygon zkEVM is still conducted using the existing MATIC token, and gas fees within the PoS network continue to be paid in MATIC. Consequently, users, validators, and application developers are not immediately required to swap their MATIC holdings for POL.
The initial announcement by Polygon Labs regarding the development of a new Layer-2 ecosystem was made on June 29. Referred to as "Polygon 2.0," the ecosystem was expected to incorporate the new POL token. However, it's important to note that at the time of the announcement, POL was still in the proposal stage and had not been deployed on the Ethereum network.
Polygon's Layer 2 ecosystem, employing zero-knowledge proofs to validate transactions between networks, is positioned to face competition from the Optimism Ecosystem, proposed by Optimism Labs. The latter relies on Optimistic Rollup technology to secure communication between networks, setting the stage for a vibrant competition in the Layer 2 scaling solutions space.
