# $MATIC IS TRANSFORMING INTO $POL

By [harecrypta.eth](https://paragraph.com/@harecrypta) · 2023-07-16

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[https://t.me/HareCrypta\_lab\_ann/3136](https://t.me/HareCrypta_lab_ann/3136)

The founders and researchers of **Polygon** have proposed a token upgrade that will replace the existing $MATIC token with $POL. This will allow $POL to be used as a universal token for all networks built on Polygon.

**$POL** will underpin the **Polygon 2.0 Staking Layer.** Validators will need to stake their $POL to participate in the block production process on any chain in the ecosystem, including Validium, **zkEVM** rollup, and **Supernets**.

✅ **What are the benefits of the update?**

🔶 The ability to become a validator; 🔶 The opportunity to earn protocol rewards; 🔶 The opportunity to earn transaction fees; 🔶 Additional rewards (depending on the chain); 🔶 Enhanced security and scalability; 🔶 Governance.

To carry out the upgrade, you will need to send $MATIC to a special upgrade smart contract, which will automatically return an equivalent amount of $POL.

Token holders will be given a sufficient period to carry out the upgrade. The plan is for four years or even more, if the initiative receives community support.

✅ **What is $POL's tokenomics?**

🔶 Initial supply — 10 billion, same as $MATIC; 🔶 2% annual $POL token emission — validator rewards (1%), public treasury (1%).

▶️ **Why is this important?**

It appears that $**MATIC** will transition from a gas token to a reward and governance token $POL. If the upgrade is adopted, it could stimulate accelerated growth and development of the Polygon network.

 _@evaneskate_

#polygon  
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*Originally published on [harecrypta.eth](https://paragraph.com/@harecrypta/matic-is-transforming-into-pol)*