Polygon Announces Proposal to Upgrade ‘MATIC’ Cryptocurrency to ‘POL’

1 year ago 60

Proposing a new currency transition

Polygon Labs, which develops software for Polygon (MATIC), announced on the 13th that the founder of Polygon and a group of researchers have released a white paper on a new crypto asset (virtual currency) “POL”.

POL is a virtual currency that technically upgrades MATIC. From now on, if the upgrade proposal is approved by the community, we will replace all MATIC with POL at a 1:1 ratio. POL is said to be the “third generation cryptocurrency” following Bitcoin (BTC) and Ethereum (ETH).

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

What is a polygon

A project to tackle the scalability problem of Ethereum. They are developing multiple solutions such as “Polygon PoS”, “Polygon zkEVM” and “Supernets”. With Supernets, it is possible to build a chain specialized for an application.

Cryptocurrency Glossary

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Regarding the purpose of the upgrade, he explained that POL is designed to contribute to the safety improvement and development of the Polygon ecosystem. POL, which is described as “extremely productive,” has the following advantages:

Improved ecosystem security
Get unlimited scalability
Better ecosystem support
Reduce friction between users and developers
Giving Ownership to the Community

Although it will be a high-impact upgrade because it replaces all MATIC, Polygon Labs claims that the technical process is simple. If you send MATIC to the upgrade smart contract, you will automatically receive the same amount of POL.

He explained that a sufficient period of time, such as four years, would be set for the upgrade. It says it will start migrating in the next few months, if the community agrees.

One currency to run all chains

Once the upgrade is done, Polygon’s network validators will be staking POL. This is the same mechanism as MATIC and other tokens that adopt a proof-of-stake (PoS)-based consensus algorithm, but Polygon Labs said the following two innovative improvements to POL:

Validators can validate as many chains as they want
Each chain can offer validators multiple roles and rewards accordingly

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The structure will provide virtually limitless possibilities for POL holders, while improving the security of the ecosystem and accelerating growth.

Polygon Labs announced a new development plan “Polygon 2.0” last month. The upgrade to POL is part of this development plan.

At the time, the company said it planned to make individual announcements over four weeks, with the token being announced on the 10th of this month. Polygon Labs now explains that it has been preparing its POL upgrade proposal for about a year.

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