Polygon, originally known as Matic Network, is a leading Layer 2 scaling solution designed to address Ethereum’s persistent challenges of network congestion and high transaction fees. As a multi-chain framework, Polygon enables various scaling technologies—such as Plasma, Optimistic Rollups, and zkRollups—to operate synergistically while maintaining full compatibility with Ethereum. Rather than replacing Ethereum, Polygon serves as its "scaling partner," enhancing transaction speed, reducing costs, and accelerating the mass adoption of decentralized applications (DApps).
The native token of the Polygon ecosystem, once called MATIC, has officially transitioned to POL—marking a pivotal upgrade in the network’s evolution. This transformation is more than just a rebranding; it reflects a strategic shift toward a unified, aggregated blockchain architecture powered by AggLayer, positioning POL at the heart of Polygon’s next-generation ecosystem.
👉 Discover how Polygon’s POL upgrade is reshaping the future of multi-chain interoperability.
From MATIC to POL: A Strategic Upgrade for 2025 and Beyond
On September 4, 2024, the Polygon Foundation officially launched the mainnet upgrade that replaced MATIC with POL as the native gas and staking token on the Polygon PoS chain. This change was driven by community consensus and marks the first phase of Polygon 2.0—a vision centered on seamless cross-chain experiences.
According to the official announcement:
SAVE THE DATE: MATIC → POL
After community consensus, the long-awaited upgrade is set for September 4th
• Initial phase: POL replaces MATIC as the native gas and staking token for Polygon PoS
• Subsequent phases: POL will serve a crucial role in the AggLayer
This upgrade introduces an annual 2% inflation mechanism to support validator rewards and community treasury funding. Users holding MATIC on Polygon PoS experienced an automatic 1:1 conversion to POL. For those holding ERC-20 MATIC tokens on Ethereum, a manual swap via the official Portal was required.
Key Facts About POL (Formerly MATIC)
- Token Name: POL
- Ticker Symbol: $POL
- Market Cap: ~$2.52 billion
- Fully Diluted Valuation (FDV): ~$2.52 billion
- Market Rank: #41 (as of April 2025, per CoinMarketCap)
- Category: Layer 2 Scaling Solution
- Initial Token Standard: ERC-20 (Ethereum)
- Circulating Supply: ~10.41 billion POL
- Total Supply: ~10.41 billion POL
- Official Website: polygon.technology
Source: CoinMarketCap (as of April 2025)
What Is AggLayer? The Backbone of Polygon’s Multi-Chain Vision
At the core of Polygon 2.0 is AggLayer, a revolutionary protocol designed to unify liquidity, user states, and assets across multiple blockchains into a single, seamless experience—effectively making "multiple chains feel like one."
AggLayer allows any connected blockchain (called AggChains) to share state and assets without relying on traditional bridges or wrapped tokens. Imagine transferring POL from an exchange directly into a gaming dApp on another chain—with no intermediate steps, no extra gas fees, and near-instant confirmation.
This infrastructure eliminates fragmentation in Web3, enabling developers and users to interact across chains as effortlessly as browsing websites on the internet today. As AggLayer rolls out, POL will play a central role in governance, coordination, and security, reinforcing its utility beyond simple transaction fees.
👉 Learn how AggLayer is building the future of unified blockchain experiences.
Core Use Cases of the POL Token
As Polygon evolves, so does the functionality of its native token. Here are the primary roles POL plays across the ecosystem:
1. Gas Fee Payment
All transactions and smart contract interactions on Polygon chains require POL to cover computational costs—ensuring smooth and low-cost operations.
2. Staking & Network Security
Validators and delegators must stake POL to participate in consensus mechanisms. This process secures the network and earns participants staking rewards funded by inflation.
3. Decentralized Governance
Holders of staked POL can vote on critical proposals through the new Polygon Governance Hub. This includes decisions about protocol upgrades, treasury allocations, and future development directions for Polygon PoS, zkEVM, and AggLayer.
4. Cross-Chain Coordination via AggLayer
In future phases, POL will be used to coordinate messaging, finalize proofs, and govern cross-chain operations within the AggLayer framework—making it essential for interchain communication.
How Does Polygon Compare to Other Layer 2 Solutions?
As of May 2025, Polygon competes closely with other top L2 platforms like Arbitrum and Base. While TVL remains lower than its rivals, Polygon excels in active engagement and developer diversity.
| L2 Blockchain | Protocols | Monthly Active Addresses | DeFi TVL (USD) | TVL Monthly Change |
|---|---|---|---|---|
| Base | 503 | 864,783 | $3.09B | -1.58% |
| Arbitrum | 798 | 195,166 | $2.27B | -3.71% |
| Polygon | 608 | 432,275 | $836.97M | +12.91% |
Data source: DeFiLlama (May 2025)
Despite trailing in total value locked (TVL), Polygon shows strong momentum with a growing number of protocols and rising user activity—suggesting renewed confidence in its long-term roadmap.
Major Applications Built on Polygon
Decentralized Finance (DeFi)
Polygon remains a key hub for DeFi innovation due to its low fees and fast finality.
- QuickSwap: A native decentralized exchange offering low-cost swaps and liquidity pools.
- AAVE: A leading lending protocol that expanded to Polygon to offer efficient borrowing and yield opportunities.
While TVL peaked at over $9 billion during the 2021 bull run, it currently stabilizes around $800 million–$1 billion—a sign of maturity rather than decline.
NFTs & Gaming
Polygon's efficiency makes it ideal for NFT marketplaces and blockchain games where frequent microtransactions are common.
Projects like Zed Run and Crypto Unicorns leverage Polygon’s infrastructure for scalable digital ownership experiences.
Recent Developments Shaping Polygon’s Future
November 2024: AUSD Becomes AggLayer’s Native Stablecoin
Stablecoin issuer Agora announced that AUSD, developed in collaboration with VanEck and State Street, will serve as the native stablecoin across AggLayer-integrated chains. This move aims to streamline cross-chain payments, lending, and trading while generating revenue for the ecosystem.
December 2024: Plonky3 Reclaims Title as Fastest ZK Proof System
Polygon Labs unveiled Plonky3, an open-source zero-knowledge proof engine capable of processing over 2 million hashes per second on M3 Max chips—outpacing competitors. It powers next-gen zkVMs like SP1 and Valida, accelerating ZK adoption across AggLayer-compatible networks.
How to Buy POL Tokens
POL is widely available on major cryptocurrency exchanges:
- Binance
- OKX
- Bybit
Simple Steps to Acquire POL:
- Create an account and complete KYC verification.
- Deposit funds via bank transfer or credit card (often easiest using USDT).
- Trade USDT for POL directly.
Always use reputable exchanges to ensure fund security.
👉 Start your journey into scalable Web3 with secure access to POL tokens.
Frequently Asked Questions (FAQ)
Q: What happened to MATIC? Is it gone forever?
A: MATIC has been upgraded to POL. On Polygon PoS, the transition was automatic (1:1). ERC-20 MATIC holders must manually swap via the official portal.
Q: Can I still use my old wallets for POL?
A: Yes. Most major wallets (MetaMask, Trust Wallet) support POL after updating token symbols.
Q: Why did Polygon change its token name?
A: The shift from MATIC to POL aligns with Polygon 2.0’s vision—a more integrated, multi-chain ecosystem centered around AggLayer.
Q: Does POL have inflation?
A: Yes. A 2% annual inflation rate supports validator rewards and community incentives.
Q: Will POL replace all other tokens in the Polygon ecosystem?
A: No. POL is the main utility and governance token but coexists with others like zkEVM-specific tokens or project-native assets.
Q: How does AggLayer improve user experience?
A: It removes bridge complexities—users can move assets and data across chains instantly without wrapping or waiting.
Final Thoughts: The Road Ahead for Polygon and POL
The transition from MATIC to POL is not merely cosmetic—it represents a fundamental evolution in Polygon’s mission. With AggLayer, advanced ZK tech via Plonky3, and institutional-grade stablecoins like AUSD, Polygon is building a cohesive, high-performance multi-chain future.
For developers, this means streamlined deployment across chains. For users, it means frictionless interaction with Web3. And for investors, holding POL offers exposure to one of the most ambitious interoperability projects in crypto.
As the industry moves toward aggregation over fragmentation, Polygon’s strategic upgrades position it as a leader in shaping what comes next: a truly unified blockchain internet.