Polygon, a widely recognized Ethereum scaling solution, recently outlined plans for altering its native token from MATIC to POL, as detailed in the recently released Polygon 2.0 roadmap. The switch, it would seem, goes beyond a simple change of title, as POL is touted as a “3rd generation token”, following in the heels of the likes of Bitcoin and Ether.
Developing a reputation for promoting interoperability as well as multichain validation, POL’s design features are geared toward optimizing user experience across the protocol’s layer 2 ecosystem. This is evidenced in the hyperproductivity offered by POL, enabling holders to not only earn rewards as validators, but also has much wider utilities allowing them to validate a greater number of chains.
This single upgrade proposes a scope of benefits, including providing the opportunity for validators to embrace multiple roles across different chains, consequently deriving varying rewards. One can’t help but notice the facilitative nature of the proposed native token switch – yes, there’s a technical action involved, receiving POL in an equivalent amount to the MATIC submitted to the upgrade smart contract, but Polygon certainly seems to have thought this through.
The term “game-changing” comes to mind, particularly when you consider the provision of an upgrade window time of potentially four or more years for token holders. Yet, is it not worth pondering on the haste? Why the urgency to push through a revision that could take months, contingent on community consensus?
Presenting as a unified token for all networks based on Polygon, be it the zkEVM network or various supernets, the newly proposed POL could yield significant benefits for validators and participants alike. Interesting to note is the timing of the proposal – a month following the implication raised by the US Securities and Exchange Commission (SEC) concerning MATIC’s status as an unregistered security. But, according to Polygon, the proposal supposedly is not a response to these recent global regulatory occasions.
On the financial front, tracking the performance of MATIC after the announcement highlighted an immediate 2.6% surge to $0.747, the highest since June. CoinGecko data reports a 5% rise last 24 hours trading volume for Polygon’s native token post-announcement, with altcoins experiencing a 21.9% increase during the same period. Total trades? Over $306 million.
While multifaceted, the uncertainties intermingled with the apparent strides of progress make it clear, whether we’re dealing with regulatory issues, token upgrades or the market’s response – these are indeed thrilling times in the world of blockchain.
Source: Cryptonews
