The POL token, formerly known as MATIC, is a utility token built on the Ethereum blockchain. It was originally introduced as an ERC-20 standard token but underwent a significant upgrade in September 2024. This upgrade transformed POL into a “Hyperproductive Token,” enabling it to perform a broader range of functions beyond its initial role as a gas token for transactions on the Polygon network.
As a utility token, POL is now used for various purposes within the Polygon ecosystem, including staking to secure the network and facilitating other decentralized applications. This evolution reflects the growing capabilities and versatility of the Polygon platform.
How Polygon Works
Polygon’s Proof-of-Stake system incorporates Heimdall, a unique mechanism enabling the withdrawal of collateral assets. Heimdall safeguards the system’s integrity by detecting and preventing fraudulent activities, such as the deliberate dissemination of false information to manipulate the blockchain.
To enhance scalability, Polygon leverages Plasma and the Polygon SDK as a collaborative framework. This approach has attracted significant interest from blockchain projects seeking to expand their networks. Plasma empowers the blockchain to accommodate an unlimited number of Decentralized Applications (DApps) and Decentralized Finance (DeFi) protocols, overcoming the limitations inherent in traditional Proof-of-Work systems.
Polygon 2.0
According to the white paper, the transition from MATIC to POL is a key element of the broader Polygon ecosystem upgrade, known as “Polygon 2.0,” which launched on June 12, 2024. This upgrade leverages a Layer-2 blockchain powered by zero-knowledge (ZK) rollups and cross-chain capabilities, aimed at enhancing security, scalability, and liquidity.
Polygon 2.0 is the result of a collaborative effort involving Polygon Labs, developers, researchers, application creators, node operators, validators, and both the Polygon and Ethereum communities, facilitated through discussions on community forums.
The upgrade process is designed to be gradual and sequential. A key component of Polygon 2.0’s evolution is the transition from MATIC to POL, which plays a pivotal role in the Protocol Architecture. This architecture defines how different protocol layers interact, comprising four key layers: the Staking Layer, Aggregation Layer, Execution Layer, and Proving Layer. The Proving Layer supports the Aggregation Layer, which is set to become crucial for managing network connections in the future.
The Aggregation Layer enables efficient communication across different networks within the Polygon ecosystem, ensuring smoother and more secure interactions. Simplifying cross-network communication helps unify the Polygon network, making it operate as a seamless, single entity.
References