Polygon PoS Evolution: Navigating the Upgrade to ZK-Based Validium and POL Token Transformation

By Ashish Gupta | CryptoDossier | 14 Dec 2023

Polygon PoS stands as a revolutionary EVM-compatible, hybrid plasma proof-of-stake sidechain designed to enhance Ethereum’s scalability with impressive throughput and cost-effectiveness. Since its inception in June 2020 as the Matic Network, it has undergone multiple upgrades, the latest proposal aiming to transform it into a zero-knowledge (ZK)-based validium on Ethereum. This proposed upgrade, discussed in the Polygon forum, envisions leveraging Polygon zkEVM’s execution environment alongside a dedicated data availability layer, establishing inherent interoperability with a wider network of ZK-powered Layer 2 (L2) chains on Ethereum.

The Polygon PoS network, in its evolved state, will remain foundational infrastructure supporting a myriad of decentralized applications and services. To engage with the Polygon Network, users require an Ethereum-based wallet due to its operation on the Ethereum Virtual Machine (EVM). Popular choices for this purpose include setting up a Metamask or Arkane Wallet.

Matic’s Seamless Transition

As part of its evolution, the Matic token is undergoing a transformation, rebranded as POL, the native token upgrade for the Polygon ecosystem. POL serves various purposes within the network, including network participation and security enhancement. Stakeholders can actively contribute by staking POL, effectively acting as validators. Notably, POL shares many features with its predecessor, MATIC, built upon OpenZeppelin’s ERC20 framework and supporting EIP-2612 for signature-based permit approvals.

The POL upgrade, scheduled for the fourth quarter of 2023, will gradually increase the token supply at a rate of 3% per annum from its inception. Governance holds the authority to modify this emission rate through an upgrade of the EmissionManager contract.

The transition from MATIC to POL is anticipated to be seamless, with an automated process that eliminates the need for manual tasks. Active participants in the MATIC ecosystem have no mandatory steps to follow, though participation in governance proposals is encouraged through the PIP program. Node operators, delegators, application and tooling developers, as well as developers for applications on the Polygon PoS network, need not make immediate adjustments, ensuring continuity and stability.

Central to the transformation is the token migration process, operating on a one-to-one conversion basis. A dedicated migration smart contract facilitates this transition, allowing users to exchange MATIC for an equivalent amount of POL. Post-migration, MATIC tokens remain in the migration contract, available for potential “unmigration” if needed. The migration contract incorporates a feature called “unmigration,” offering users the flexibility to revert POL tokens back to MATIC. Governance retains the authority to manage this feature, providing adaptability to changing network conditions or security considerations.

In essence, Polygon PoS, with its upcoming upgrades and token evolution, continues to solidify its position as a vital player in enhancing Ethereum’s scalability and fostering a robust ecosystem for decentralized applications and services.