What is POL? Polygon’s Ecosystem Upgrade

POL replaces MATIC as Polygon’s native token, enabling unified validation, shared security, and multi-chain interoperability across the ecosystem.

POL introduces stronger validator incentives with new roles, rewards, and community treasury funding, driving long-term network stability and growth.

The upgrade positions Polygon for sustainable expansion, removing systemic frictions and supporting scalable, cross-chain Web3 development.

Polygon has upgraded MATIC to POL, a next-gen multi-purpose token that powers cross-chain validation, shared security, and ecosystem incentives in Polygon 2.0.

WHAT IS POL? | FROM MATIC TO POL

In 2024, the Polygon team introduced a major token upgrade: replacing its long-standing native token MATIC with POL. This is not just a rebrand—it marks a new chapter in Polygon’s ecosystem strategy. POL is designed to function as a multi-purpose token, enabling cross-chain utility and serving as the unified validator token across the Polygon ecosystem.

➤ Official Website:

Following the proposal’s approval, Polygon officially executed the upgrade on September 4, 2024, converting all circulating MATIC into POL. Exchanges quickly aligned with the transition, signaling the start of a new era for the Polygon network.

🔍 Why POL Was Created

Polygon’s journey began in 2017 with the launch of Matic Network by Jaynti Kanani and Sandeep Nailwal. Initially a PoS blockchain scaling solution for Ethereum, it was rebranded as Polygon in 2021, expanding into a broader multi-chain vision.

As the network evolved, Polygon introduced the “AggLayer” (short for Aggregation Layer). This architecture connects multiple blockchains, allowing seamless liquidity and state sharing across L1 and L2 chains. In simple terms, AggLayer makes cross-chain transactions nearly as smooth as interactions on a single chain.

Within this framework, POL was born. It is not merely a successor to MATIC, but the backbone of AggLayer—serving as the validator token that secures and coordinates activity across Polygon’s interconnected chains.

📌 The Strategic Role of AggLayer & POL

AggLayer represents a breakthrough in blockchain interoperability. Instead of each chain independently maintaining its own security, AggLayer consolidates them under a unified validator set, enhancing efficiency, security, and connectivity.

In this system, POL plays a central role:

Validators must stake POL to participate in securing AggLayer.

POL strengthens security across multiple chains, ensuring stability in cross-chain operations.

It provides economic incentives that power Polygon’s seamless multi-chain ecosystem.

By combining validation, governance, and interoperability, AggLayer with POL creates a more resilient and scalable foundation for Web3 applications.

More to read: What is Base App? A Complete Beginner’s Guide

WHAT IS $POL?

According to its whitepaper, POL will serve as Polygon’s new native token and act as a critical coordination and incentive tool across the ecosystem.

The initial supply of POL is set at 10 billion tokens, fully allocated for the 1:1 migration from MATIC to POL. This asset carries an annual issuance rate of 2%, dedicated to validator rewards and community treasury growth.

Layer 2 projections suggest that under a 10-year growth scenario, POL could reach an average price of $5. If adoption accelerates, the Polygon ecosystem may expand to support more than 25 public chains and over 3,000 supernets.

Polygon also highlighted that POL holders will have the flexibility to act as validators across multiple chains, earning diverse roles and corresponding rewards within the ecosystem.

At the same time, MATIC holders will be allowed to upgrade their assets 1:1 into POL within a designated timeframe. Importantly, the proposal clarified that MATIC and POL cannot and will not coexist—“POL can only replace MATIC.”

More to read: What is Treehouse? | $TREE Explained

WHAT MAKES POL STAND OUT?

Starting September 4, 2024, POL became the token used for gas fees and staking on the Polygon Proof of Stake (PoS) chain. Following the success of BTC and ETH, Polygon positions POL as the third-generation crypto token—built to enhance network efficiency while strengthening validator incentives.

According to Polygon’s documentation, the upgraded POL token offers several key highlights:

✅ Shared Security

Unlike MATIC, which was limited in scope, POL introduces shared security across the entire ecosystem. Validators holding POL can secure multiple chains simultaneously, reinforcing Polygon’s multi-chain architecture. This innovation ensures a more unified and resilient security layer.

✅ Enhanced Incentives

POL unlocks broader incentive mechanisms for validators. Polygon plans to offer diverse roles and additional rewards, giving validators more earning opportunities while contributing to long-term network stability and growth.

✅ Expanded Validator Roles

Through Polygon’s AggLayer, POL introduces new validator roles. Validators will be able to generate ZK proofs, participate in data availability committees, and take on other responsibilities that further improve the integrity and transparency of the ecosystem.

✅ Community Treasury

A portion of POL issuance will fund Polygon’s community treasury. This treasury will support ecosystem development through grants, research, adoption programs, and governance initiatives. By channeling resources back into the ecosystem, Polygon ensures sustainable growth and fosters innovation across its chains.

More to read: zkSync: Ethereum’s Latest Layer 2 Scaling Solution

MATIC TO POL | IMPACT OF THE UPGRADE

The transition from MATIC to POL is designed to strengthen the Polygon ecosystem, enhancing its security, scalability, and overall support for multi-chain development.

This upgrade also removes systemic friction. Instead of relying on traditional cross-chain coordination, POL eliminates the need for users and developers to constantly manage or burn the original token to access the network.

In essence, Polygon’s technical roadmap aims to further improve network efficiency and expandability. By upgrading MATIC into POL, Polygon can better support multi-chain validation, offering users greater functionality and choice. Looking ahead, this upgrade positions Polygon for stronger growth and long-term sustainability.

99.18% of the MATIC ➪ POL technical upgrade is now complete pic.twitter.com/InExOFbe7H

— Polygon (@0xPolygon) August 29, 2025

✏️ The Future of POL

The transition to POL marks Polygon’s entry into the “multi-chain unification” era. Going forward, whether on the Polygon PoS chain, Polygon zkEVM, or future subchains, POL will serve as the common denominator. This means:

Polygon can deliver more flexible and efficient scaling solutions.

Developers gain easier access to cross-chain deployment tools.

Users and investors benefit from stronger security and improved experiences.

In short, POL is more than just MATIC’s replacement—it is the driving force of Polygon 2.0. By unifying cross-chain integration, security, and ecosystem incentives, POL solidifies Polygon’s position as a core infrastructure player in the Web3 landscape.

More to read: What is Polymarket? Web3 Prediction Market

ꚰ CoinRank x Bitget – Sign up & Trade!

Looking for the latest scoop and cool insights from CoinRank? Hit up our Twitter and stay in the loop with all our fresh stories!

〈What is POL? Polygon’s Ecosystem Upgrade〉這篇文章最早發佈於《CoinRank》。