Polygon proposes token switch from MATIC to POL for more utility

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.