Crypto exchange Coinbase said it would support the Ethereum layer-2 network Polygon planned token upgrade from MATIC tokens to the new Polygon Ecosystem Token (POL).

On Aug. 21, the exchange announced that it would begin migrating the Polygon ticker from MATIC to POL starting Aug. 26. It stated:

“In the coming months, Coinbase plans to complete the migration from MATIC to POL on behalf of users. We will provide details regarding the migration of Coinbase balances including the timeline for conversion once available.”

During the migration, sending and receiving MATIC on the Polygon network will be disabled between Aug. 26 and Sept. 10. This measure aims to ensure a smooth transition from MATIC to POL.

The exchange also revealed plans to add support for POL on the Ethereum network by Sept. 4. The firm will also support trading for both MATIC and POL on Ethereum until further notice.

Meanwhile, customers staking MATIC on Coinbase will continue to earn rewards.

According to CryptoSlate’s data, Polygon’s POL and MATIC tokens surged over 10% following the news.

POL migration

Coinbase’s announcement reflects the positive sentiments surrounding Polygon’s upcoming POL migration, scheduled for Sept. 4.

Polygon describes POL as a hyperproductive token designed to offer valuable services across all chains within the Polygon network, including AggLayer. The token will serve as the primary currency for gas fees and staking within the Proof-of-Stake (PoS) network which is fundamental to Polygon network security.

It added:

“POL will support broader roles in the Polygon staking hub (to be released in 2025), including block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs).”

Meanwhile, the transition from MATIC to POL will occur in phases, mirroring Polygon’s broader goals to boost network efficiency.

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There are no immediate deadlines for MATIC holders on Ethereum and Polygon zkEVM to upgrade to POL. However, the community will have the authority to set a deadline in the future.

Tom Wan, a research strategist at 21.co, said these processes would increase the progress of the token migration to more than 50%. Dune analytics data pegs the token migration progress at 0.1% as of press time.

The POL upgrade testnet launched on July 17. This testnet allows users and developers to familiarize themselves with the upgrade ahead of the mainnet migration.

POL utility

Polygon, the Ethereum layer-2 blockchain, has unveiled a Community Treasury initiative funded with 1 billion POL tokens, which will be distributed over the next decade to drive developer engagement on the network.

According to the June 11 press release, the tokens will be sourced from 1% of the network’s annual token emissions, as detailed in the POL whitepaper.

Polygon grant

Polygon has launched the first season of its Community Grant Program (CGP), offering developers an initial 35 million MATIC valued at around $22 million. Future seasons will provide up to 100 million POL tokens as the network transitions from MATIC to POL.

Polygon’s CGP aims to support early-stage builders with essential funding. Polygon stated:

“Building is hard. The goal of CGP is to support developers while they build. Waiting until a project has finished building and produces results misses a key piece of true innovation: the opportunity to take chances.”

Developers can apply for grants from June 11 to Aug. 31. The grants range from 5,000 MATIC to over 50,000 MATIC. The Community Treasury Board will oversee the selection process.

Applications are open for the General Grants Track and the Consumer Crypto Track. The General Grants Track includes all projects building on the Polygon protocol, such as protocol infrastructure and developer tooling libraries.

On the other hand, the Consumer Crypto Track targets projects focused on driving consumer adoption, including gaming, decentralized social platforms, content creation, and NFT innovations.

Crypto community members have welcomed the initiative, pointing out that it would motivate builders to develop innovative projects.

Game developer Chris Heatherly said:

“Watch as Polygon goes from ‘dead’ to the hottest chain going because they now have rewards.”

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