- Polygon is contemplating exchanging its base token MATIC with a new token called POL
- Polygon describes POL as a next-generation token that can be used across the Polygon ecosystem
- The changes are part of a proposed overhaul of the blockchain known as Polygon 2.0
Polygon is contemplating exchanging its base token MATIC with a new token called POL which it describes as a next-generation token for use across its ecosystem. The changes are part of a proposed overhaul of the blockchain to bring to life Polygon 2.0. The upgrades are meant to position the platform as the “value layer of the Internet” and are part of the platform’s efforts to become the leading Ethereum scaling layer.
POL is Like Ethereum’s Productive Token
POL is an enhanced version of the current token MATIC and will allow its holders to stake it to become validators. POL’s arrival will mark the end of MATIC which will be deposited into the upgrade smart contract for a 1:1 exchange with POL, neutralizing the possibility of having two native tokens.
1/ Today, the next technical proposal of Polygon 2.0 is unveiled:
POL, the upgraded token of the Polygon protocol! 💫
POL is the next generation native token, designed to secure, align and grow the Polygon ecosystem.
Watch the video to get an idea how cool it is, then 🧵 pic.twitter.com/Gn7KcHpWEY
— Polygon (Labs) (@0xPolygonLabs) July 13, 2023
Polygon compares the new token with Ethreum’s ETH which it calls “a productive token” because its holders can become validators and earn rewards.
3/ Bitcoin’s BTC, although important and successful, is an unproductive token — its holders can not participate in the protocol and be rewarded for that.
Ethereum’s ETH is a productive token — holders can become validators of the Ethereum blockchain and get ETH rewards and fees.
— Polygon (Labs) (@0xPolygonLabs) July 13, 2023
If approved, the switch can take up to four years with Polygon adding that the shift can happen within months if the proposal gains acceptance within the community. The shift is part of a proposed Polygon 2.0 that promises an architecture that eases interaction with the Polygon ecosystem.
Coordination Layer Eliminates Wrapped Tokens
Among other features included in the proposed upgrade is the introduction of a coordination layer that unifies liquidity by eliminating the need to wrap tokens to move them across blockchains. Polygon 2.0 also seeks to introduce privacy measures through the use of zero-knowledge proofs.
Polygon has earned a place in the web3 world to become the second most popular gaming chain. Its popularity has also seen leading entities like Sports Illustrated, Nike and FC Barcelona launch web3 projects on the platform.
With the upgrade and token switch, Polygon is likely to increase its dominance of the web3 space.
