Polygon to replace MATIC? Here’s all you need to know
- POL could replace MATIC as Polygon’s native token.
- The introduction would allow holders to act as validators.
Polygon [MATIC] Labs’ new proposal may see the project’s native token make way for an upgraded one. According to the Ethereum [ETH] scaling solution, MATIC could be replaced with POL if the technical proposition passes approval.
How much are 1,10,100 MATICs worth today?
ZK calls for POL
From the tokenomics details shared, POL might not be a complete change from MATIC. Instead, it would be a third-generation native token that aligns with Polygon 2.0— the redesigned protocol infrastructure.
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
Recently, the web3 firm introduced Polygon 2.0 as the network’s Zero-Knowledge (ZK) powered cross-chain coordination protocol. Polygon had mentioned that the 2.0 would be the “value layer of the internet” which unifies the L2 chains with liquidity and scalability.
Furthermore, Polygon, using Ethereum as an example, explained that POL would be a “hyperproductive” token that enables holders to become validators as it would only require a simple smart contract upgrade for MATIC. POL’s tokenomics read,
“Polygon’s POL takes the next leap in this direction and introduces the third generation of native assets – hyperproductive tokens. Similarly to productive tokens, it enables its holders to become validators and receive rewards, but with two game-changing improvements.”
Since 2020, MATIC has been the native token of the Polygon network. And according to CoinMarketCap, the token’s all-time performance was a 17,347% increase. But in the last 90 days, MATIC’s value has decreased by 34.56%.
MATIC’s exit has been in the works
However, Polygon cleared the air that if the technical proposal gets approved, MATIC would cease to exist.
“Practically speaking, POL is an upgrade and renaming of the MATIC token. From the protocol viewpoint, MATIC and POL would not and cannot coexist; POL can only replace MATIC.”
However, the project also noted the decision to try and deploy a new token had nothing to do with SEC’s decision to label MATIC as an unregistered security. In June, MATIC appeared in the list of tokens the regulatory body described as unregistered securities in a lawsuit against Binance.
Despite Polygon’s rebuttal that the token was not a security, trading platform Robinhood delisted MATIC from its platform. Now, Polygon said the POL idea had been in the works for almost a year. It also noted that it had been in its long-term plan since the rebranding of MATIC Network to Polygon.
Is your portfolio green? Check the Polygon Profit Calculator
Meanwhile, the crypto community had mixed reactions to the disclosure. For some, taking a dig at 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 like the last rebrand.