The difference between the MATIC currency and the MATIC token on Polygon
MATIC can be an ERC-20 on Mainnet Ethereum in addition to being the main currency on Polygon. I get that.
But there is also an ERC-20 MATIC on Polygon with the address 0x000..1010. Why?
Is it an extra MATIC different from the normal MATIC? That would be confusing... So I started investigating:
The three entities we have are:
- MATIC ERC-20 on Mainnet (0x7D1AfA7B718fb893dB30A3aBc0Cfc608AaCfeBB0)
- The native MATIC currency on Polygon.
- MATIC ERC-20 on Polygon (0x0000000000000000000000000000000000001010)
The MATIC Polygon token seems a bit special. The address does not look like a normal address.
The big question here is really if the MATIC native currency and MATIC Token is the same thing. Let’s focus on those two.
Checking my balance on a polygon wallet I have, I get the following balances:
- MATIC in my MetaMask wallet: 25.1696
- MATIC (ERC-20) when running
These are actually the same values (when rounding and moving decimal places). This has to mean that the MATIC ERC-20 is mirroring the balance of the native currency. But why?
Maybe Polygon doesn’t have a native currency?
The more I start to dig into this, the more I start to think that maybe Polygon doesn’t have their own native currency like ETH on Mainnet. It’ not its own chain after all. It’s just a L2.
I have to admin, I don’t really know how L2s and sidechains work.
Wait, is this Wrapped MATIC?
I posted a tweet with my new worldview, and someone told me it could be a wrapped version of MATIC.
But it turns out that, even if there actually is a wrapped MATIC, this MATIC I am talking about has nothing to do with the wrapped version.
A good article explaining wrapped MATIC: https://quickswap-layer2.medium.com/i-know-what-matic-is-but-what-tf-is-wmatic-ba7b3220e36f
After my extensive research and soul searching, I am 80% sure it works somehow like this:
MATIC is always an ERC20 token, there is no special native currency on Polygon like ETH on Mainnet.
It’s always ERC-20. However, on Polygon, MATIC can act like a native currency or an ERC-20.
I certainly feel a bit better now. I hope you learned something too.
As always, please let me know if I’m wrong :)