Coinbase, the popular crypto exchange, recently made an announcement regarding its support for the Ethereum layer-2 network Polygon’s planned token upgrade from MATIC tokens to the new Polygon Ecosystem Token (POL). The exchange disclosed that it would commence the migration of the Polygon ticker from MATIC to POL starting on Aug. 26, with a promise to complete the migration process for users in the upcoming months. This move signifies Coinbase’s commitment to staying up to date with the latest developments in the cryptocurrency ecosystem.
As part of the migration process, Coinbase will temporarily disable the sending and receiving of MATIC on the Polygon network between Aug. 26 and Sept. 10. This temporary disruption is essential to ensure a seamless transition from MATIC to POL without any hiccups. In addition to supporting the new POL token on the Ethereum network by Sept. 4, Coinbase will allow trading for both MATIC and POL on Ethereum until further notice. Customers who currently stake MATIC on Coinbase will continue to receive rewards during this period.
Following Coinbase’s announcement, data from CryptoSlate indicated that both Polygon’s POL and MATIC tokens experienced a significant surge of over 10%. This surge reflects the positive sentiments surrounding Polygon’s upcoming POL migration, scheduled to take place on Sept. 4. Polygon has characterized the POL token as a highly efficient token intended to provide essential services across all chains within the Polygon network, including AggLayer. POL will play a crucial role as the primary currency for gas fees and staking within the Proof-of-Stake (PoS) network, thereby enhancing the overall security of the Polygon network.
The transition from MATIC to POL will unfold in various phases, aligning with Polygon’s overarching objectives to optimize network efficiency. POL is poised to take on broader responsibilities within the Polygon staking hub, set to launch in 2025. These responsibilities will encompass block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs). By gradually transitioning from MATIC to POL, Polygon aims to streamline its operations and enhance the functionalities of its network to better serve its user base.
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