Polygon Proposes Replacing MATIC Token for Upgrade 2.0
The team behind the Ethereum scaling solution Polygon has unveiled three significant proposals within the framework of the upcoming 2.0 overhaul.
Polygon Proposes Replacing MATIC Token for Upgrade 2.0. Image: Polygon
On the afternoon of September 14th, the Ethereum scaling protocol Polygon introduced new Polygon Improvement Proposals (PIPs) related to the imminent Polygon 2.0 upgrade.
1/ The wait is over. Polygon 2.0 implementation kicks off now with the release of 3 Polygon Improvement Proposals (PIPs), and a roadmap for Phase 0.https://t.co/gk7FW0zCpc pic.twitter.com/YJo3BtQy4y— Polygon (Labs) (@0xPolygonLabs) September 14, 2023
Firstly, PIP-17 outlines "Phase 0" of Polygon 2.0, aimed at ensuring end-users and developers do not need to take any actions on both Polygon PoS and Polygon zkEVM during the upgrade process.
Secondly, PIP-18 proposes the issuance of the POL token, intended to replace the current MATIC token and serve as the transaction fee (gas fee) and staking token across the Polygon ecosystem.
- Initiation of MATIC to POL upgrade
- POL becoming the native (gas) token for PoS
- POL becoming the staking token for PoS
- Launch of the Staking Layer, enabling validators to secure a myriad of chains in the Polygon 2.0 ecosystem pic.twitter.com/RE71n7dkT0— Polygon (Labs) (@0xPolygonLabs) September 14, 2023
Thirdly, PIP-19 calls for the conversion of the native token on Polygon PoS from MATIC to POL, aiming to maintain the integrity of current smart contracts. The goal is to preserve the attributes of POL post-upgrade.
Introduced in June 2023, Polygon 2.0 is positioned as the "value layer for the Internet," establishing a comprehensive network of interconnected layer-2 chains based on zero-knowledge proof. The upgrade represents a comprehensive overhaul touching nearly every aspect of the project, including transitioning PoS sidechains to zkEVM validium, enhancing functionalities for the MATIC token, and shifting to a higher-level community governance model for the protocol and project fund.
The community will have time to comment, provide feedback, and vote on these proposals until the fourth quarter of this year, before Polygon 2.0 is implemented next year. Additionally, the project announced plans to deploy Polygon 2.0 outside the U.S., amidst MATIC being listed by the SEC for securities allegations.
6/ Everyone is invited to contribute. Check out the Polygon Forums to read the PIPs, leave comments and ask questions.https://t.co/ALtt57Wnqs— Polygon (Labs) (@0xPolygonLabs) September 14, 2023
The MATIC price has seen a slight increase following the announcement.
15-minute chart of MATIC/USDT pair on Binance at 06:50 PM on September 14, 2023
