The word of crypto is dynamic, and it is not uncommon to see upgrades or forks to a blockchain network. Developers of the layer two scaling solution Polygon is proposing to transform the token. Polygon Labs plans to enhance the MATIC token and rename it to POL as the network switches to Polygon 2.0, making the blockchain the “value layer of the internet.”
How Does Polygon 2.0 Differ from the Original?
POL is a suggested technical improvement for MATIC that would increase its adaptability and productivity. In the Polygon ecosystem, POL would be able to validate transactions on a variety of chains, including Proof of Stake, zkEVM, and Supernets. This means:
- MATIC’s reincarnation would work with a variety of Polygon-based protocols and networks, including Ethereum, Bitcoin, Binance Smart Chain, and others. Without the need for intermediaries or bridges, POL would be able to communicate with various networks, which can lower costs and latency.
- POL would be able to support a variety of smart contract types, including optimistic rollups, zero-knowledge proofs, and private transactions. The Polygon upgrade would be able to improve the privacy and scalability of these transactions and smart contracts, without sacrificing security or decentralization.
- Polygon 2.0 would be able to take part in many governance models and consensus methods, including Proof of Work (PoW), Delegated Proof of Stake, and others. POL would be able to stake its tokens to secure, validate, and profit from many chains.
- It gives its owners the ability to become validators and get incentives, but with two revolutionary changes. First, Validators are permitted to validate an unlimited number of chains. Second, each chain or network has the ability to provide validators with a variety of functions and rewards.
Tokenomics of Polygon 2.0
Polygon holders would probably think about what will happen to all MATIC tokens once the upgrade is approved and implemented. From a protocol viewpoint, POL and MATIC cannot exist side by side. POL will replace MATIC. How this will be done is yet to be discussed in detail.
The Polygon community will also decide which token it will use for gas fees. There is a possibility of using ETH, but the final verdict is not yet out. It is up to the community to decide.
Blockchain Projects are Always Evolving
Change is part of life, and blockchains are like living organisms that continuously adapt and improve. The implementation of Polygon 2.0 will let the chain go beyond being a layer two protocol, but will instead be called the value layer of the internet. This type of upgrade shows that a lot of crypto projects are not here to commit fraud or create a modern Ponzi Scheme. Instead projects. like Polygon, are here to give value to the community.
Other Polygon Articles:
- Polygon and Warner Music Partners to Power Innovative Accelerator Program
- Robinhood Launches Crypto Wallet for iOS with Support for Bitcoin, Ethereum, Dogecoin, SHIB, and Polygon
- Polygon Layer 2 Network adoption increases with Big Players
Source: Polygon
Image: Unplash
Subscribe To Our Newsletter
Join our mailing list to receive the latest news and updates from our team.