In a current improvement, Polygon Labs has unveiled a proposal to improve its native token, MATIC, to a brand new token referred to as POL. The announcement, made by means of a weblog publish, introduces POL as a next-generation protocol token that goals to grow to be a serious driving power 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 gaggle of Polygon founders and researchers, introduces POL as a third-generation native asset, characterised as a hyperproductive token. In keeping with 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/ In the present day, the following technical proposal of Polygon 2.0 is unveiled:
POL, the upgraded token of the Polygon protocol! 💫
POL is the following technology native token, designed to safe, align and develop the Polygon ecosystem.
Watch the video to get an thought 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 means of the participation of a extremely decentralized pool of Proof-of-Stake (PoS) validators. This method goals to boost safety, resilience, and neutrality throughout all POL chains, as validators are incentivized to safe as many chains as doable.
Scalability has lengthy been a problem for blockchain networks, and the POL token seeks to handle this situation. The upgraded token is designed to help the exponential progress of the Polygon ecosystem whereas sustaining a excessive stage of safety. This scalability characteristic is anticipated to facilitate mainstream adoption and accommodate 1000’s of chains.
Moreover, the proposed improve goals to supply 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 eradicate such frictions, doubtlessly enhancing consumer and developer expertise throughout the ecosystem.
The crew’s dedication to neighborhood 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 can robotically convert it into the equal quantity of POL tokens. Polygon Labs has assured token holders that they’ll have ample time, doubtlessly 4 years or extra, to finish the migration.
Remarkably, Polygon Labs has additionally emphasised that this proposal has been in improvement for practically a 12 months and isn’t a direct response to current regulatory occasions. It’s a fastidiously thought of plan to boost the ecosystem and adapt to the evolving panorama of blockchain know-how.
Extra particulars are anticipated to comply with quickly, when the crew will share extra particulars in a yet-to-be-released Polygon Enchancment Proposal (PIP).
At press time, the token value 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.
Featured picture from Admiral Markets, chart from TradingView.com