Binance Backs Polygon's Network Overhaul for Hyper-Scalable Future

Binance has announced its support for Polygon's upcoming network upgrades and hard forks, including the transition from MATIC to the new native token POL. The exchange will implement temporary suspensions of token deposits and withdrawals during the upgrade periods to ensure a seamless transition for users. These actions align with Polygon's broader efforts to enhance network performance and scalability.

The first phase of the upgrade, the Bhilai Hard Fork, is scheduled for July 1, 2024. During this event, Binance will halt MATIC deposits and withdrawals starting at 16:10 ET, with trading activities continuing uninterrupted. The hard fork aims to improve Polygon's Bor nodes, increasing transaction throughput to approximately 1,000 transactions per second (TPS) with finality in under five seconds. A follow-up upgrade in October 2024 is expected to further boost performance to 5,000 TPS with one-second finality .

A second, more significant migration from MATIC to POL is set for September 2024. By September 9, Binance will cease accepting MATIC deposits and withdrawals, with all existing MATIC holdings automatically converted to POL at a 1:1 ratio. Trading pairs for MATIC will be delisted on September 10, and POL pairs will launch by September 13. This transition marks Polygon's shift toward a new token standard designed to enhance governance and scalability across its ecosystem. The migration is intended to position POL as a "hyper-productive" token supporting multiple chains within Polygon's AggLayer .

Binance emphasized that users will not need to take manual actions during the upgrades, as the exchange will handle technical requirements on their behalf. Deposits and withdrawals will resume once the upgraded networks stabilize, though Binance will not issue formal announcements for the resumption. For the March 2024 upgrades, which also included Cosmos, similar measures were applied, with temporary suspensions for MATIC and ATOM deposits and withdrawals .

Polygon's upgrades are part of a strategic initiative to improve network efficiency and align with evolving industry standards. The Bhilai Hard Fork introduces protocol improvements such as PIP-60, which optimizes gas limits and node configurations. Meanwhile, the POL token migration reflects Polygon's long-term vision to streamline operations and foster broader adoption of its blockchain infrastructure. The Polygon Foundation has already transferred 10 million MATIC to Binance in anticipation of the token swap, signaling confidence in the network's future .

The implications for the cryptocurrency market are notable. By supporting these upgrades, Binance reinforces its role as a key infrastructure provider for blockchain innovation. The temporary suspension of MATIC/POl services may impact short-term liquidity but is expected to stabilize as the upgraded network gains traction. Analysts suggest that the transition to POL could enhance Polygon's appeal to developers and enterprises seeking scalable solutions, potentially driving increased adoption and usage of the network .

Binance's proactive approach underscores its commitment to fostering technological advancements in the crypto space. The exchange's support for Polygon's upgrades aligns with its broader strategy to empower blockchain ecosystems and provide users with access to cutting-edge protocols. As the network evolves, Binance's role in facilitating smooth transitions will be critical in maintaining user trust and operational continuity.

Source: [1] title5 (https://thecurrencyanalytics.com/altcoins/binance-rallies-behind-polygon-and-cosmos-network-upgrades-what-you-need-to-know-103982) [2] title6 (https://cryptonews.net/news/market/31191543/) [3] title7 (https://www.cryptopolitan.com/binance-to-support-polygon-upgrade/)