In the latest development, Polygon Labs has launched an Ethereum contract for its new POL token, intended to power the Polygon zkEVM layer-2 ecosystem.
POL token, ‘a next-generation hyperproductive token’, will eventually replace MATIC, Polygon’s original staking and gas token, according to the October 25 announcement.
However, Polygon emphasized that MATIC holders do not need to immediately swap their tokens for POL. MATIC will continue to be used for staking, transaction fees, and other operations on Polygon’s proof-of-stake network.
The POL token will only be utilized once additional layer-2 networks launch on Polygon 2.0 next year.
POL token will boost the ecosystem of zk-based Layer 2 chains through Polygon’s native re-staking protocol. The protocol allows POL holders to sail across various chains for various purposes, including sequencing, ZK proof generation, participation in data availability committees, etc.
The POL token was created on the Ethereum blockchain earlier today at 9:06 am UTC under the name “Polygon Ecosystem Token.” Polygon first unveiled plans for a new token and layer-2 ecosystem called Polygon 2.0 in June. At the time, specific details were not made available.
Last month, the team revealed that a zero-knowledge proof-based network called the Polygon zkEVM would serve as the flagship layer-2 chain in Polygon 2.0.
The zkEVM will offer faster and cheaper transactions while ensuring a high degree of privacy and security.
Zero-knowledge proofs allow transactions to be validated without revealing any underlying data. Polygon believes this technology will greatly expand its layer-2 ecosystem while avoiding bottlenecks and congestion issues faced by rival platforms.
The launch of the POL token is a significant milestone along Polygon’s roadmap for phasing in Polygon 2.0 over the coming year.
Other planned upgrades include a new staking layer, transitioning the existing proof-of-stake chain to a zkEVM-based layer-2, and creating a modular liquidity protocol.
Polygon Co-Founder Mihailo Bjelic stated that POL unlocks “an exponential increase in flexibility and modularity that will power Web3 to scale new heights.”