Big Shift: Polygon Retires MATIC, Introduces POL as the New Power Token

Coinbase to Convert MATIC into POL as Polygon Launches Major Network Upgrade

Polygon, one of the most widely used blockchain platforms in the world, is entering a new chapter. Its long-awaited token upgrade from MATIC to POL is finally here, and the shift marks a significant moment in the project’s evolution. Coinbase, the largest cryptocurrency exchange in the United States, has now announced how it will handle the transition for its millions of customers.

The change does more than replace one token with another. It represents Polygon’s broader transformation from a single blockchain into a multi-chain network called AggLayer, designed to connect numerous blockchains into a unified ecosystem. POL, the new token, will play a central role in powering this vision.

Coinbase Migration Plan

Coinbase confirmed that all MATIC balances held on its platform will automatically be upgraded to POL tokens between October 14 and October 17, 2025. During this migration window, several services will be temporarily suspended to ensure a smooth transition.

Source: Polygon.technology

• On October 7, staking and unstaking of MATIC will stop.

• On October 14, trading of MATIC will be permanently disabled.

• From October 14 to 17, sending and receiving MATIC will be paused while balances are upgraded to POL.

Coinbase also explained that staking rewards will not be earned during the migration period. For users who prefer not to convert their MATIC into POL, Coinbase has advised withdrawing tokens into self-custody wallets before October 14.

For most users, however, no action is required. Once the migration window closes, Coinbase accounts will simply show updated POL balances, ensuring a seamless switch.

Why Polygon Is Upgrading to POL

The upgrade is not just a technical detail but part of a much bigger shift in Polygon’s strategy. Initially launched as a scaling solution for Ethereum, Polygon has grown into one of the most successful Web3 projects, hosting thousands of decentralized applications (dApps) and securing billions in assets.

But Polygon’s ambitions now extend beyond being a single chain. The project is evolving into an aggregated blockchain network under the name AggLayer. This system will connect multiple chains into one broader ecosystem, where assets and data flow seamlessly between networks.

To power this vision, Polygon needed a token that could serve as more than just a staking and gas asset on its Proof-of-Stake (PoS) chain. POL was introduced to become the native currency of this multi-chain environment, supporting not just Polygon’s current operations but its broader ambitions to unify Web3 infrastructure.

Key Differences Between MATIC and POL

While the upgrade will be seamless and conducted at a 1:1 ratio, meaning no value loss for holders, POL introduces important changes designed to support Polygon’s long-term ecosystem growth.

1. New Emission Model
   POL will have a 2% annual emission rate over the next 10 years. Half of this will be allocated to validator rewards, ensuring network security, while the other half will go into a community treasury to fund ecosystem growth.

2. Expanded Utility
   While MATIC was primarily used for staking and gas fees on the Polygon PoS chain, POL is designed with broader utility across the AggLayer network. It will function as a unifying token across multiple interconnected chains.

3. Backwards Compatibility
   To reduce friction, Polygon has designed the upgrade to be backwards compatible. This means existing applications, wallets, and tools built around MATIC will continue to work without interruption. For most users, the only visible change will be the token’s name and ticker.

What This Means for Users

For Coinbase customers, the transition will happen automatically. There is no need to manually swap tokens or take action unless users prefer to hold their assets outside of the exchange.

For those holding MATIC on Ethereum or in self-custody wallets, the process requires visiting the Polygon Portal and manually swapping MATIC for POL. This ensures compatibility across platforms and guarantees that users can participate in the new token model.

Polygon has also clarified that in some wallets, users may still see “MATIC” after the upgrade. This is simply a token label issue. The actual tokens will already be POL, and updating wallet settings will correct the display.

A Major Step in Polygon’s Vision

This transition represents more than just a rebrand. It is a long-awaited step in Polygon’s journey to becoming an interconnected Web3 ecosystem. By introducing POL, Polygon is equipping itself with a flexible and scalable token system that can secure today’s Proof-of-Stake network while powering future cross-chain applications.

Industry analysts say this move reflects a broader trend in blockchain innovation, where networks are evolving from standalone platforms into interoperable ecosystems. In this sense, Polygon is positioning itself at the forefront of the next phase of blockchain development.

Market and Investor Reactions

The announcement of the upgrade has been closely watched by the cryptocurrency community and institutional investors. Analysts expect the seamless migration and broader utility of POL to strengthen confidence in Polygon’s long-term prospects.

Coinbase’s involvement is particularly significant. As one of the most trusted exchanges for both retail and institutional investors, its role in managing the migration provides assurance of a smooth process. The clarity of Coinbase’s timeline also reduces uncertainty, helping stabilize market sentiment during the transition.

So far, POL has been well received in trading markets where early adoption has begun. Traders are closely watching how the token will perform once the migration completes and POL becomes the standard across all exchanges.

The Broader Impact on Web3

The launch of POL and the creation of AggLayer are part of a broader movement toward scalability and interoperability in blockchain. By enabling multiple chains to operate within a single ecosystem, Polygon is attempting to solve one of Web3’s biggest challenges: fragmentation.

If successful, this could have wide-reaching effects. Developers would gain access to shared liquidity and user bases across multiple chains, while users would benefit from faster transactions, lower costs, and more reliable applications.

Polygon’s success in this transition may also influence other blockchain projects. As Web3 matures, more networks may look to follow similar strategies, evolving from single-purpose chains into broader ecosystems.

Looking Ahead

The switch from MATIC to POL is not just a technical migration; it is a strategic transformation that could redefine Polygon’s role in the Web3 space. For years, Polygon has been one of the leading Ethereum scaling solutions, but POL positions it as something bigger: a hub for an interconnected blockchain economy.

As the October migration date approaches, all eyes are on how smoothly Coinbase and other exchanges handle the transition. A successful migration would validate Polygon’s planning and set the stage for further adoption of POL across decentralized applications and enterprise solutions.

In the long run, the impact of this upgrade will depend on how effectively Polygon can deliver on its AggLayer vision. But for now, the transition to POL marks one of the most ambitious moves in the cryptocurrency space this year — and a defining moment for the future of Polygon.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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