Polygon’s new POL token is up over 15% today after being listed on Binance, the world’s largest cryptocurrency exchange. This surge comes as the long-awaited transition from the MATIC token to POL comes to fruition.
Polygon first announced the transition from MATIC to POL in July, and after a year of community discussions, the transition was officially made on September 4. The POL token now serves as the native gas and staking token for the Polygon Proof-of-Stake (PoS) chain, which is compatible with the Ethereum Virtual Machine (EVM).
“The transition to POL is a key component of the project’s evolution towards a zero-knowledge (ZK) chain and its integration with AggLayer, which aims to consolidate liquidity and state across multiple chains,” said analyst Vishal Chawla. POL will continue to operate under MATIC’s existing tokenomics and will maintain a total token supply of 10 billion.
The exchange rate from MATIC to POL is set at 1:1, with a gradual 2% increase in emissions over the next decade. MATIC holders on the Polygon PoS chain will automatically switch to POL, while those holding MATIC on Ethereum, Polygon zkEVM, or centralized exchanges must manually move their tokens via a migration contract.
*This is not investment advice.