POL could replace MATIC as Polygon’s native token. The introduction would allow holders to act as validators.
Polygon [MATIC] Labs’ new proposal could see the project’s original token make way for an upgraded token. According to the Ethereum [ETH] scale solution, MATIC can be replaced by POL if the technical proposal is approved.
How many 1,10,100 MATICs worth today?
ZK asks for POL
From the shared tokenomics details, POL may not be a complete change from MATIC. Instead, it would be a third-generation native token aligned with Polygon 2.0, the redesigned protocol infrastructure.
1/ Today the following 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.
Then watch the video to get an idea of how cool it is 🧵 pic.twitter.com/Gn7KcHpWEY
— Polygon (Labs) (@0xPolygonLabs) July 13, 2023
Recently, the company introduced web3 Polygon 2.0 as that of the network Zero Knowledge (ZK) powered cross-chain coordination protocol. Polygon had said that the 2.0 would be the “value layer of the Internet” uniting the L2 chains with liquidity and scalability.
In addition, Polygon, using Ethereum as an example, explained that POL would be a “hyperproductive” token that would allow holders to become validators, as it would only require a simple smart contract upgrade to MATIC. read POLs tokenomics,
“Polygon’s POL takes the next step in this direction, introducing the third generation of native assets – hyper-productive tokens. Similar to prolific tokens, it allows its holders to become validators and receive rewards, but with two groundbreaking improvements.”
Since 2020, MATIC is the native token of the Polygon network. And according to CoinMarketCap, the token is all-time performance was an increase of 17,347%. But in the past 90 days, the value of MATIC has dropped 34.56%.
The exit of MATIC is in the making
However, Polygon made it clear that if the technical proposal is approved, MATIC would cease to exist.
“Practically speaking, POL is an upgrade and renaming of the MATIC token. From a protocol point of view, MATIC and POL could not coexist; POL can only replace MATIC.”
However, the project also noted that the decision to try to deploy a new token had nothing to do with SEC’s decision to label MATIC as an unregistered security. In June, MATIC appeared on the list of tokens that the regulatory body described as unregistered securities in a lawsuit against Binance.
Despite Polygon’s refutation that the token was not a security, trading platform Robinhood MATIC removed from its platform. Now, Polygon said the POL idea had been in the works for nearly a year. It also noted that it was in its long-term plan since rebranding from MATIC Network to Polygon.
Is your wallet green? Check the Polygon profit calculator
Meanwhile, the crypto community had mixed reactions to the revelation. For some, digging for Bitcoin [BTC] and calling it an “unproductive asset” was unnecessary.
Some other comments pointed out how the development could mark the beginning of a bull market, such as the latest rebrand.
This post Polygon to replace MATIC? Here’s everything you need to know
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