We want to inform you about some important changes regarding MATIC.
In 2023, the Polygon team outlined their roadmap, signaling their plan to transition MATIC to POL. They are taking the first steps in this direction as part of our commitment to support this initiative and ensure our clients' access to critical markets.
Polygon’s Evolution
Formerly known as Matic Network, Polygon enhanced Ethereum's transaction capacity. Think of Ethereum as a main road and Polygon as an additional lane that reduces traffic congestion. Since its inception in 2017, Polygon has made significant strides, enabling developers to create decentralized applications (DApps) and customized infrastructure for web3 builders using advanced technologies like ZK and Optimistic rollups for enhanced speed and security.
What’s Changing?
To prepare for the migration to native POL, the temporarily halted deposits and withdrawals of MATIC on the Polygon Network will only be made at 14:00 UTC on August 19th, 2024.
After this date, MATIC transactions will no longer be processed on the Polygon Network. Any attempts to deposit MATIC on Polygon after this deadline will result in a loss of funds.
However, MATIC funding on the Ethereum Network (ERC-20) and all related spot, margin, and futures markets will function normally. Your staked MATIC will remain intact; this change will not affect the reward rate.
POL Upgrade and Staking Mechanism
Polygon has recently announced details about the upcoming POL upgrade and its PoS (Proof-of-Stake) staking mechanism. On September 4, 2024, POL will replace MATIC as the native gas and staking token for the Polygon PoS network, with expanded utility compared to MATIC.
The transition from MATIC to POL is expected to occur gradually over up to 4 years. There are currently no deadlines for MATIC holders on Ethereum and Polygon zkEVM to upgrade to POL, though the community may establish one in the future.
Key Features of POL and Staking Mechanism
The staking token plays a critical role in maintaining network security, incentivizing validators, and ensuring the health and scalability of the Polygon network. Staking is integral to Polygon PoS consensus. Validators stake POL to participate in network validation and governance, which secures the network and ensures efficient transaction processing.
Validators and delegators earn rewards for their participation. These rewards come from staking incentives (1% of annual inflation) and transaction fees, providing consistent incentives for validators to maintain network security and performance.
Validators have key responsibilities, such as block production, checkpoint signing, and proposing new blocks. The incentives are structured to ensure they are adequately motivated to uphold the security and resilience of the network.
POL’s delegation mechanism broadens participation in staking, further enhancing network security. Delegators can stake POL with trusted validators and earn rewards proportional to their staked amount, making network security accessible to all token holders.
Governance of the staking mechanism is decentralized through the Polygon Improvement Proposal (PIP) process, allowing the community to adjust emission rates, oversee security protocols, and ensure the system adapts to network needs.
The transition from MATIC to POL is designed to be seamless, with a 1:1 upgrade facilitated by a migration smart contract. POL, as a staking token, is central to network security, scalability, and governance on Polygon PoS, ensuring the network’s robustness and resilience.
MATIC Price and Market Insights
Investors are currently eyeing a potential surge in MATIC, hoping it might reach $1. Currently, MATIC is trading at $0.534779, with an expected increase of 8.83% to $0.565 by August 20, 2024. However, technical indicators suggest a 'Sell' sentiment, making it crucial to monitor the market closely.
Over the past 30 days, MATIC has experienced a 37% positive trading trend, closing in the green on 11 out of 30 days. The price volatility stands at -23.72%, indicating moderate fluctuations. In the last 24 hours alone, MATIC has seen a 4.88% rise, with a current market cap of $4.96 billion.
If the bullish trend continues, MATIC could reach a high of $0.50, driven by increasing use cases and positive market sentiment. Conversely, bearish action could lead MATIC to retest its crucial support level of $0.3250, influenced by market volatility and regulatory changes.
Yearly and Long-Term Price Predictions
If momentum builds, MATIC could break through to test a resistance level of $0.500, potentially reaching $0.690. However, a downturn could see the price fall back to the critical support of $0.325.
Various sources predict a significant rise in MATIC's price in 2024, with forecasts ranging from $0.4901 to $6.91. By 2025, MATIC could reach around $10.941, although it might dip to $8.511. Further into the future, by 2030, MATIC’s price could continue to rise, potentially hitting $10, though some estimates suggest it may stabilize around $6.32.
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