While Polygon Labs has revealed more about the future of its ecosystem, we learn that the MATIC will soon be replaced by a new token called POL. What does this novelty entail?
MATIC should be replaced by POL in Polygon 2.0
Polygon Labs has released its version 2.0 tokenomics, and the major point that emerges is the arrival of the native token POL, which would replace the MATIC :
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
At this stage, it is only a proposal, and all the elements that we will develop are still subject to acceptance by the governance.
Thus, it is the novelties brought by Polygon 2.0, which would justify the creation of a new token:
“Today, a group of Polygon founders and researchers released a white paper proposing POL, a technical upgrade to the native Polygon network asset. POL is the next generation protocol token, designed to become the main tool for coordination and growth of the Polygon ecosystem and the main driver of the value layer vision for the Internet. »
In the facts, MATIC holders will be able to redeem them for an equivalent amount of POL when the time comes. Furthermore, this migration could begin in the months following the adoption of the project by the governance, and could give investors a period of 4 years or more to update.
👉 To go further — How to buy Polygon’s MATIC cryptocurrency?
Trade on one of the oldest platforms
🎧 Listen to this article and all other crypto news on Spotify
New for validators
On the validator side, they will be able to validate several chains at the same time, while only stacking their POL in one place.
Validators will therefore have the freedom to validate as many blockchains from the Polygon ecosystem as they want. This obviously includes the current Proof-of-Stake network as well as the ZK Rollup compatible with the Ethereum Virtual Machine (EVM), but also all the supernets that may be created.
As a reminder, the supernets are a kind of parallel networks designed to improve the scalability of Polygon for specific use cases, like the Avalanche (AVAX) subnets.
On the rewards side, validators will receive a share of the transaction costs of the various networks as well as a part of the new POLs created. In addition, additional incentives may be offered according to the strategies of each blockchain in the Polygon ecosystem, for example through stablecoins or tokens native to said networks.
According to this strategy, the MATIC will therefore, in the long term, be completely replaced by the POL. In view of the developments of recent years, Polygon can no longer be considered as a simple sidechain of Ethereum (ETH), but as a fully-fledged blockchain ecosystem.
👉 Also in the News — Bitget Reports 223% Reserve Ratio to Protect Users’ Cryptocurrencies
Confused and overwhelmed by cryptocurrencies? 🤔
Spot opportunities and make informed investment decisions 🔎
Source: Polygon Labs
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.