Polygon Labs Proposes To Replace MATIC With POL Token

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In a current improvement, Polygon Labs has unveiled a proposal to improve its native token, MATIC, to a brand new token known as POL. The announcement, made by way of a weblog put up, introduces POL as a next-generation protocol token that goals to turn into a significant driving pressure for the coordination and progress of the ecosystem, positioning it because the Worth Layer of the Web.

Polygon: MATIC Turns into POL

The proposal, outlined in a complete white paper by a bunch of Polygon founders and researchers, introduces POL as a third-generation native asset, characterised as a hyperproductive token. Based on them, POL enhances the performance of native tokens by permitting validators to validate a number of chains and enabling every chain to supply a number of roles and corresponding rewards to validators.

1/ As we speak, the subsequent technical proposal of Polygon 2.0 is unveiled:

POL, the upgraded token of the Polygon protocol! 💫

POL is the subsequent technology native token, designed to safe, align and develop the Polygon ecosystem.

Watch the video to get an concept how cool it’s, then 🧵 pic.twitter.com/Gn7KcHpWEY

— Polygon (Labs) (@0xPolygonLabs) July 13, 2023

The proposed improve brings a number of potential advantages to the ecosystem. One of many key benefits is improved ecosystem safety, achieved by way of the participation of a extremely decentralized pool of Proof-of-Stake (PoS) validators. This strategy goals to reinforce safety, resilience, and neutrality throughout all POL chains, as validators are incentivized to safe as many chains as attainable.

Scalability has lengthy been a problem for blockchain networks, and the POL token seeks to deal with this subject. The upgraded token is designed to assist the exponential progress of the Polygon ecosystem whereas sustaining a excessive stage of safety. This scalability function is anticipated to facilitate mainstream adoption and accommodate hundreds of chains.

Moreover, the proposed improve goals to offer a frictionless expertise for customers and builders. Not like some blockchain protocols that introduce complexities by requiring native token holdings, staking, or consumption, POL has been designed to remove such frictions, probably enhancing consumer and developer expertise inside the ecosystem.

The group’s dedication to group possession and governance is mirrored within the proposal. The introduction of POL would allow token holders to take part in governance frameworks, emphasizing decentralization and making certain a community-driven decision-making course of.

The migration course of from MATIC to POL is meant to be seamless, with token holders required to ship MATIC to an upgraded good contract, which is able to routinely convert it into the equal quantity of POL tokens. Polygon Labs has assured token holders that they are going to have ample time, probably 4 years or extra, to finish the migration.

Remarkably, Polygon Labs has additionally emphasised that this proposal has been in improvement for practically a yr and isn’t a direct response to current regulatory occasions. It’s a fastidiously thought-about plan to reinforce the ecosystem and adapt to the evolving panorama of blockchain expertise.

Extra particulars are anticipated to comply with quickly, when the group will share extra particulars in a yet-to-be-released Polygon Enchancment Proposal (PIP).

At press time, the token worth reacted strongly to the information and recorded an increase of greater than 5% within the final 24 hours. In a bullish transfer, MATIC broke the 23.6% Fibonacci retracement stage on the 1-day chart and traded at $0.7733.