Coinbase, one of the leading cryptocurrency exchanges, has made a significant decision to support the Ethereum layer-2 network Polygon’s planned token upgrade from MATIC tokens to the new Polygon Ecosystem Token (POL). This move was announced on Aug. 21, with the migration process set to commence on Aug. 26.
During the migration process, users will not be able to send or receive MATIC on the Polygon network between Aug. 26 and Sept. 10. This temporary restriction is put in place to ensure a smooth transition from MATIC to POL. Additionally, Coinbase has disclosed its plans to introduce support for POL on the Ethereum network by Sept. 4, allowing trading for both MATIC and POL until further notice.
Upon the announcement of Coinbase’s support for Polygon’s migration to POL, there was a noticeable surge in both POL and MATIC tokens, with prices rising by over 10%. This positive market response reflects the excitement and optimism surrounding Polygon’s upcoming POL migration scheduled for Sept. 4.
Polygon describes its POL token as a hyperproductive token that will provide valuable services across all chains within the Polygon network, including AggLayer. The POL token will play a crucial role in facilitating transactions within the network, serving as the primary currency for gas fees and staking within the Proof-of-Stake (PoS) network.
The POL token is designed to support various functions within the Polygon network, including block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs). Moreover, Polygon has outlined plans to expand the roles of POL within the Polygon staking hub, set to be released in 2025, further enhancing network efficiency and security.
Coinbase’s decision to support Polygon’s migration to the POL token signifies a significant step towards enhancing the functionality and efficiency of the Polygon network. With the promise of valuable services and improved network security, the introduction of the POL token is expected to bring about positive changes within the cryptocurrency ecosystem. As the migration process unfolds in the coming months, users can look forward to a seamless transition from MATIC to POL, ushering in a new era of possibilities for the Polygon network.