Polygon’s native token, MATIC, is poised for a transformation. Sandeep Nailwal, the founder of Polygon Labs, has hinted at a significant technical upgrade that would evolve MATIC into POL, touted as a “third-generation token.”
According to Nailwal’s X platform post, the imminent POL evolution represents more than a name change. POL encapsulates advancements that offer the allure of multi-chain staking minus the risks traditionally associated with restaking.
POL is a massive technical upgrade to MATIC
POL delivers the benefits of multi-chain staking without the added risks of restaking. With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain to an ecosystem of L2s that can easily interoperate and share…
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) August 28, 2023
As Polygon 2.0 unfolds, the platform would burgeon from a single chain to an entire ecosystem of interoperable L2s, which can seamlessly share liquidity among themselves.
The Functionality of POL
In Polygon 2.0, the introduction of the newly devised POL will see it staked in a designated ‘staking hub.’ This mechanism, termed “enshrined restaking,” empowers POL to stake across diverse chains and take on varied roles. As a result, stakers could reap enhanced rewards without increasing their staked capital.
Highlighting the transformation of tokens over time, Nailwal compared the passive nature of BTC’s first-generation holders with the active staking capabilities ETH introduced in the second generation. With the third-generation POL, holders are presented with unprecedented versatility, securing multiple networks and embracing a spectrum of roles.
A pressing concern raised by a user revolved around the transition mechanism. The user, who had staked MATIC, was keen on understanding how the shift would impact their staked tokens. Nailwal responded by hinting at a streamlined “1/2 click upgrade” from staked MATIC to staked POL, assuring more clarity on the governance approval.
Current Market Dynamics
As of now, Polygon’s valuation hovers at $0.569232 per token. Despite witnessing a slight 4.32% dip in the past 24 hours, its market cap stands robust at over $5.3 billion, ranking 14th on CoinMarketCap. Out of a maximum supply of 10 billion MATIC coins, around 9.3 billion are circulating, signaling strong investor trust and a potential growth trajectory.
The evolution from MATIC to POL promises a fresh chapter of innovation and opportunities. As the community eagerly awaits more details, it’s evident that Polygon is charting a course toward uncharted territories.
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