Polygon launches POL token contract on Ethereum to eventually replace MATIC

Polygon Labs claimed that the POL token will have “re-staking” functionality, allowing it to be used on multiple Polygon networks.
Tom Blackstone
Posted by Tom Blackstone October 25, 2023 2 Mins Read
Polygon Labs claimed that the POL token will have “re-staking” functionality, allowing it to be used on multiple Polygon networks.

Polygon Labs has launched the Ethereum contract for the new Polygon token, POL, according to an Oct. 25 announcement. The new token is intended to replace the ecosystem’s current token, MATIC (MATIC). However, the team said users presently don’t need to exchange their MATIC for POL.

According to blockchain data, the new token was created on Oct. 25 at 9:06 am UTC. Its full name is the “Polygon Ecosystem Token.” In the announcement, the Polygon team claimed that POL would “power a vast ecosystem of zero knowledge-based Layer 2 chains” by implementing a “re-staking protocol” that allows tokenholders to stake it on multiple chains, performing multiple functions in the process.

The token’s launch will now pave the way for other aspects of the Polygon 2.0 roadmap to be implemented, including the launch of a new staking layer for the Polygon ecosystem, upgrading the current proof-of-stake (PoS) network to zkEVM layer-2, and creating a shared liquidity protocol for all Polygon networks, the post stated.

Related: ZK-focused Manta Pacific opts out of OP Stack for Polygon CDK

The team emphasized that POL is not currently being used for any systems in the Polygon network. Staking on both Polygon PoS and Polygon zkEVM is still being performed via the old token, MATIC, and gas fees on the PoS network are still being paid for with MATIC. So, users, validators,and app developers do not need to exchange their MATIC for POL at present.

Polygon Labs first announced it was developing a new layer-2 ecosystem on June 29. It called the new ecosystem “Polygon 2.0.” On Sept. 14, the team announced that Polygon 2.0 would use a new token, POL. But at the time, the token was just a proposal and had not been deployed to Ethereum. 

Polygon’s proposed layer-2 ecosystem will use zero-knowledge proofs to validate transactions between networks. It will face competition from the Optimism ecosystem proposed by Optimism Labs, which will use optimistic rollup technology to secure messages between networks.

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