- MATIC price climbed nearly 5% in response to Polygon’s announcement of upgrade to POL token.
- MATIC token holders will send their tokens to a smart contract that returns equivalent POL tokens.
- POL will be used for voting on governance proposals for dApps built on the Polygon blockchain.
Polygon, Ethereum’s largest Layer 2 scaling solution, announced an upgrade to its native token MATIC. Developers proposed an upgrade from MATIC to utility token POL for utility in dApps built on the network’s blockchain.
In response to the development, MATIC price rallied nearly 5%, as seen on Binance.
Also read: XRP fate hangs in balance after SEC vs LBRY judge fails to rule on LBC token status
MATIC researchers propose upgrade to POL token
Polygon Network’s token MATIC suffered regulatory crackdown as the Securities and Exchange Commission (SEC) labeled the asset as a “security.” In response to the SEC’s actions, MATIC price witnessed a decline.
The community of Polygon founders and researchers proposed a token upgrade. Developers called for the native token MATIC to be replaced with POL, a single token for all Polygon-based dApps and applications.
Proud to unveil POL, the proposed upgrade to MATIC!
— Mihailo Bjelic (@MihailoBjelic) July 13, 2023
POL is a next gen, multi-utility token, designed to secure, align and grow the Polygon ecosystem.
We’re excited to discuss the proposal with the community. Only together we can build the Value Layer of the Internet! https://t.co/si2LcnT1wC
POL would find applications on the Polygon blockchain, zkEVM network and application-specific chains in the ecosystem that run on top of the network. The news of the proposal and the upgrade to POL token fueled a bullish sentiment among holders, pushing MATIC price nearly 5% higher.
How MATIC holders can get POL tokens
The proposal is subject to discussion and approval by the Polygon community. In case it is approved, MATIC holders will be able to send their tokens to a smart contract that returns them POL.
Holders in the community will have adequate time to exchange their MATIC for POL, the proposed time frame is four years or more.
If the MATIC community supports the move, the proposal is likely to go through.
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