Polygon 2.0 comprises proposed upgrades that enhance every system that Polygon currently has, from protocol architecture to tokenomics to governance.
And as part of the blockchain’s plan to attain that goal, they released their fourth technical proposal – the POL token.
So, if you want to learn more about POL, let’s dive further into this article!
Polygon Labs recently unveiled its fourth technical proposal, which was upgrading its native token, MATIC, to POL.
For context, POL is a next-generation proposed native token from Polygon to sustain the growth of Polygon’s ecosystem.
It comprises a lot of innovative features and improvements that optimize the functional workflow of Polygon, indicating a suitable and better replacement for MATIC in achieving Polygon’s 2.0 vision.
So, instead of MATIC, users can use POL for transaction-related purposes in the network once it’s finally set.
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
More details about POL
Once POL is adopted, MATIC holders can convert their tokens into POL with a 1:1 amount ratio.
Now, what makes POL special?
As you can see, Bitcoin’s native token, BTC, is successful yet unproductive. Why? Because holders can’t participate in the protocol and get rewards.
This idea contradicts Ethereum because its native token, ETH, is a productive coin, meaning holders can become validators and get rewards for the value they’ve brought.
For Polygon’s POL, it serves as a hyperproductive token. It functions the same as ETH but with significant improvements, including:
- Validators can work across multiple chains
- Each chain can offer multiple roles to validators, meaning more rewards.
So, in Polygon 2.0, validators have many opportunities to earn, unlike in Ethereum, where validators are only limited to a single chain.
With the new POL token, the opportunities on Polygon Ecosystem are endless.
New tokenomics, massive projects and a lot of growth. A great chance to win big on Polygon ecosystem against other L2s in the space. pic.twitter.com/uo6DWx3lxu
— Relative (@relativefi) July 16, 2023
Significance of Polygon 2.0 in Web3
By taking note of its goal, there are two major benefits that Polygon 2.0 offers to the Web3 community.
1. Unifying Polygon protocols
Polygon 2.0 sets on combining protocols across multiple platforms, leveraging advanced technologies such as zk-Ethereum Virtual Machine, proof-of-stake, and supernets.
For those who are new, each chain functions differently; here’s a summary of their functions.
- Polygon PoS sidechain – a protocol that processes all transactions, averaging 2-3 million daily.
- Supernets – a solution for developing app-chains correlating to Polygon’s PoS protocol
- Polygon zkEVM – a scaling solution that reduces transaction costs and massively increases throughput
With Polygon 2.0’s upgrade, it will combine these protocols and establish its vision of the “Value Layer” of the internet.
Moreover, this will help achieve its goal of creating a groundbreaking ecosystem that enables users to generate, exchange, and program value seamlessly.
2. Limitless Scalability
In Polygon 2.0, scalability takes center stage, addressing one of the most pressing challenges faced by blockchain networks.
And with the introduction of ZK (Zero-Knowledge) powered Layer 2 chains, this makes scalability possible.
This feature in Polygon 2.0 ensures that its network can handle huge numbers of transactions without problems and congestions.
As a result, the network can scale with no problems and provide gaps for more innovative applications in the future.
3. Unified Liquidity for Seamless Transactions
Polygon 2.0 is not only focused on scalability but also on facilitating liquidity experience across all Polygon chains.
The introduction of ZK (Zero-Knowledge) powered Layer 2 also comes along with an innovative interop layer.
Therefore, this feature allows for effortless asset movement between different chains within the Polygon network.
This advancement eases user experience, granting access to a broader range of decentralized applications and enabling smooth transactions with unified liquidity.
Polygon’s recent efforts mark a bullish signal not just for Web3’s ecosystem but for the betterment of its community.
Its success could have extensive implications for the future of decentralized finance and other blockchain-based applications.
Nonetheless, Polygon’s 2.0 roadmap is currently at its final countdown of releasing its last proposed plan.
So, make sure to keep an eye out for our latest news and articles to keep you updated about Web3!
In the meantime, what do you think about this update?