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Future, Thy Name is POL
Polygon, one of the most exciting #SocialMining projects supported by @DAO Labs , has come a long way since its changeover from the #MATIC✅ Network, and the infusion of that Balkan spirit into the Indian technical knowhow and entrepreneurship has birthed a new era that took the then-struggling $MATIC Network into the phoenix that is @Polygon . Now, stronger than ever, Polygon’s MATIC token has also made the switch to $POL, after a year of community discussions, in the spirit of true decentralization. But that all might be somewhat confusing if you are new to the field, so here are some of the key questions and answers, based on the POL White Paper (available here: https://polygon.technology/papers/pol-whitepaper) and the Polygon blog (available here: https://polygon.technology/blog)
Differences between POL and MATIC tokens:
In the world of tokens, the most noticeable difference is that POL is what the white paper calls a “hyperproductive” token, while MATIC is simply productive. MATIC was mainly used for gas fees and staking, but POL allows validators to validate multiple chains, perform various roles, and earn rewards from multiple sources. Thus, POL's utility extends beyond MATIC’s, as it serves to provide validators with more options in terms of their levels of activity and earnings.
Why POL is referred to as a third-generation token:
POL is defined as a “third-generation token” because it does more than just enabling validation like second-generation tokens (e.g., Ethereum’s ETH). POL allows validators to secure multiple chains simultaneously and perform different roles, such as zero-knowledge proof generation and participation in Data Availability Committees (DACs). This expands the capabilities of the token in potentially unforeseen ways, and makes it more scalable and versatile.
How POL differs as a staking token:
POL introduces more flexible staking. Validators can stake POL to secure multiple chains, rather than being limited to a single chain as with MATIC. POL also offers multiple streams of rewards across a range of chains, rather than being limited to a sşngle chain — these include protocol rewards, transaction fees, and additional incentives offered by individual chains. POL validators can also choose to perform multiple roles on the same chain, thereby expanding the potential returns.
Impact of POL on Node operators:
For node operators, POL offers greater flexibility and more opportunities for rewards. By allowing validators to participate in multiple chains and roles, POL increases the potential rewards for operators. The transition from MATIC to POL requires validators to adjust to new processes, but it will increase efficiency and scalability across the network once validators have gotten a handle on these processes.
Effect of POL on liquidity flowing into the ecosystem:
POL is designed to scale infinitely – it is set to enable validators to potentially secure thousands of chains. This will likely attract more liquidity to the Polygon ecosystem with this offer of increased scalability, reduced friction, and enhanced security. The introduction of POL as a hyperproductive token, its governance features and emission policies, will support sustained growth and liquidity inflows over the long term.
Impact of the transition on Polygon's long-term goals and technological development:
POL is critical to Polygon’s long-term goals of becoming the "Value Layer" of the internet. Its ability to support thousands of interconnected Layer 2 chains is critical to realizing Polygon’s vision of exponential scalability without sacrificing security. Community engagement and governance is yet another arrow in this quiver, and this is where I and other social miners enter the picture.
Social mining involves rewarding community members who contribute value to a project by promoting it, creating content, or assisting in governance. As Polygon transitions to POL, social miners will certainly continue to play a big role in driving adoption. We work by spreading awareness, in this case, of POL’s features, benefits, and value to the community. That means social miners are key influencers in educating the broader public on the advantages of POL, and of web3 in general, as the wider public is still largely unaware of its present and future advantages. Or even of its existence!
POL’s community governance and increased decentralization means social miners may be rewarded with POL tokens for their contributions. POL opens up more governance roles that social miners can take part in, too - submitting or voting on Polygon Improvement Proposals (PIPs), for example! This creates a feedback loop: the more social miners are engaged, the more they benefit from POL, and the more they promote its adoption.
Social mining boosts network activity and liquidity inflows, we all know that. Since POL is designed to support a wide range of decentralized applications (dApps) and chains, social miners can create buzz and onboard developers, users, and projects. This increased activity helps with raising the liquidity and usage of the POL token across the network.
Social miners help foster trust and transparency. As we also have a stake in the whole ecosystem, our role in content creation, governance, and education informs the broader public of what is happening. POL relies on validator participation and community governance to thrive, and social mining lets that happen more easily and speedily.
Disclaimer: All the information provided in this article is for informative and educational purposes, and not intended as financial advice. Any trades bear the risk of partial or total financial losses and must be approached with utmost caution. DYOR!
Differences between POL and MATIC tokens:
In the world of tokens, the most noticeable difference is that POL is what the white paper calls a “hyperproductive” token, while MATIC is simply productive. MATIC was mainly used for gas fees and staking, but POL allows validators to validate multiple chains, perform various roles, and earn rewards from multiple sources. Thus, POL's utility extends beyond MATIC’s, as it serves to provide validators with more options in terms of their levels of activity and earnings.
Why POL is referred to as a third-generation token:
POL is defined as a “third-generation token” because it does more than just enabling validation like second-generation tokens (e.g., Ethereum’s ETH). POL allows validators to secure multiple chains simultaneously and perform different roles, such as zero-knowledge proof generation and participation in Data Availability Committees (DACs). This expands the capabilities of the token in potentially unforeseen ways, and makes it more scalable and versatile.
How POL differs as a staking token:
POL introduces more flexible staking. Validators can stake POL to secure multiple chains, rather than being limited to a single chain as with MATIC. POL also offers multiple streams of rewards across a range of chains, rather than being limited to a sşngle chain — these include protocol rewards, transaction fees, and additional incentives offered by individual chains. POL validators can also choose to perform multiple roles on the same chain, thereby expanding the potential returns.
Impact of POL on Node operators:
For node operators, POL offers greater flexibility and more opportunities for rewards. By allowing validators to participate in multiple chains and roles, POL increases the potential rewards for operators. The transition from MATIC to POL requires validators to adjust to new processes, but it will increase efficiency and scalability across the network once validators have gotten a handle on these processes.
Effect of POL on liquidity flowing into the ecosystem:
POL is designed to scale infinitely – it is set to enable validators to potentially secure thousands of chains. This will likely attract more liquidity to the Polygon ecosystem with this offer of increased scalability, reduced friction, and enhanced security. The introduction of POL as a hyperproductive token, its governance features and emission policies, will support sustained growth and liquidity inflows over the long term.
Impact of the transition on Polygon's long-term goals and technological development:
POL is critical to Polygon’s long-term goals of becoming the "Value Layer" of the internet. Its ability to support thousands of interconnected Layer 2 chains is critical to realizing Polygon’s vision of exponential scalability without sacrificing security. Community engagement and governance is yet another arrow in this quiver, and this is where I and other social miners enter the picture.
Social mining involves rewarding community members who contribute value to a project by promoting it, creating content, or assisting in governance. As Polygon transitions to POL, social miners will certainly continue to play a big role in driving adoption. We work by spreading awareness, in this case, of POL’s features, benefits, and value to the community. That means social miners are key influencers in educating the broader public on the advantages of POL, and of web3 in general, as the wider public is still largely unaware of its present and future advantages. Or even of its existence!
POL’s community governance and increased decentralization means social miners may be rewarded with POL tokens for their contributions. POL opens up more governance roles that social miners can take part in, too - submitting or voting on Polygon Improvement Proposals (PIPs), for example! This creates a feedback loop: the more social miners are engaged, the more they benefit from POL, and the more they promote its adoption.
Social mining boosts network activity and liquidity inflows, we all know that. Since POL is designed to support a wide range of decentralized applications (dApps) and chains, social miners can create buzz and onboard developers, users, and projects. This increased activity helps with raising the liquidity and usage of the POL token across the network.
Social miners help foster trust and transparency. As we also have a stake in the whole ecosystem, our role in content creation, governance, and education informs the broader public of what is happening. POL relies on validator participation and community governance to thrive, and social mining lets that happen more easily and speedily.
Disclaimer: All the information provided in this article is for informative and educational purposes, and not intended as financial advice. Any trades bear the risk of partial or total financial losses and must be approached with utmost caution. DYOR!
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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