The Polygon team has embarked on an exciting new journey, marked by the upcoming upgrade known as Polygon 2.0. This transformative rebranding, introduced in June, represents a significant shift in the Ethereum scaling protocol, bringing forth a novel architecture designed to usher in what they call “Unified Liquidity,” Re-staking capabilities, on-demand chain creation, and a strong emphasis on the cutting-edge zero-knowledge technology, which has been making waves in the blockchain world.
As the project strides into this new era, Polygon Labs has recently unveiled three pivotal Polygon Improvement Proposals [PIPs] that shed light on the paradigm shift and introduce the POL Token. Positioned as the next-generation protocol token, POL is a fundamental component of the Value Layer for the Internet, a revolutionary concept that underpins the revamped protocol architecture. What’s noteworthy is that these technical enhancements encompass the entire Polygon ecosystem.
The creators of POL assert that it represents the “third generation of native assets”—hyperproductive tokens. Like conventional productive tokens, POL empowers its holders to become validators, reaping rewards in the process. However, POL introduces two game-changing innovations:
Firstly, validators can now validate multiple chains, offering unprecedented flexibility and efficiency. They are not limited to a single chain but can engage with as many as they desire.
Secondly, each chain can define multiple roles and corresponding rewards for validators, enhancing the diversity and utility of the ecosystem. This dynamic approach promises a more inclusive and rewarding experience for participants.
Transitioning to the new token is remarkably straightforward. Users need to execute a single technical step: submitting MATIC to the upgrade smart contract. In return, they will receive the equivalent amount of POL instantaneously. Moreover, Polygon ensures that token holders will have ample time to make this transition, spanning a period of four years or more.
Polygon 2.0: 3 Significant Proposals
Delving into the specifics of the three PIPs, PIP-17, known as “Phase 0” of Polygon 2.0, is primarily designed to streamline the upgrade process for end-users and developers. Importantly, it ensures that no action will be required from them on the existing PoS and zkEVM chains during the upgrade, offering a seamless transition.
PIP-18, on the other hand, proposes the implementation of the POL token, which is poised to replace the existing MATIC token as the native gas and staking asset within the Polygon ecosystem. Lastly, PIP-19 focuses on upgrading the native gas token on Polygon PoS from MATIC to POL while maintaining maximum backward compatibility.