$MATIC will convert to POL and be worth $5?

Here's what you need to know about it in simple words: 👇

Plan for today:
Main idea Team Investments and partnerships Figures and tokenomics How does Polygon work? Polygon 2.0 concept What is the POL token for? The ecosystem growth model TA
Let's dive in:

~ Main idea ~

Polygon solves Ethereum's scalability problem by providing tools that enable scalable and fast DApps due to cheap transaction fees.
It also provides ease of interoperability between different blockchains.

~ Team ~

The team is big and with a lot of experience:

Marc Boiron - CEO
Sandeep Nailwal - co-founder
Jaynti Kanani - co-founder
David Z - CTO, co-founder
Jordi Baylina - co-founder
Antoni Martin - co-founder
Brendan Farmer - co-founder
Daniel Lubarov - co-founder
Bobbin Threadbare - co-founder
Anurag Arjun - co-founder

And also other board and marketing members.

~ Investments and partnerships ~

Polygon has raised a total of $451M in funding over 9 rounds.
Famous names among the partners include Coinbase Ventures, The Spartan Group, DragonFly Capital, Galaxy, Republic, Animoca Brands, Union Square Ventures, etc.

~ Figures and tokenomics ~

Top-15 rank on CoinMarketCapThe price on 22/01/2024 is $0,75Circulating supply: 9,62b $MATICTotal supply: 10b $MATICMarket cap: $7,2b

As for the token distribution, we can see that almost all tokens are in circulation on the market.
Over the last 4 years, most of the tokens have been issued.
More details on the infographic:

At the moment almost all tokens are centered on one address, I guess this is due to the upcoming migration that we'll talk about later.
This is the conditional address of the main network, but in general, the top 10 addresses hold about 2-4% of the total issue.

In simple words, $MATIC is used to:

Paying transaction feesParticipating in stakingVoting for protocol managementRewarding network support in the Polygon ecosystem

~ How does Polygon work ~

It works on the principle of layer-2 scaling solution.
In other words, improves Ethereum's scalability with sidechains and reduces the gas fees associated with the original blockchain, the PoS model is used.
To make it even clearer, I would say that multiple transfers are grouped into a single transaction outside the main chain and sent to the main chain.
This means that blocks are formed through bridges and sent to the main network in their entirety.

~ Polygon 2.0 concept ~

Polygon 2.0 - a ZK-based L2 chain network, is a set of updates that aim to improve the Polygon ecosystem.
The update is designed to transition to greater community governance of the protocol and treasury.

~ What is the $POL token for? ~

It is proposed to switch from the $MATIC token to the $POL
As stated in the technical documentation, it'll be a next-generation token able to accommodate an ecosystem of ZK-based Layer 2 chains.

It's also worth noting that if you're a simple ordinary MATIC token holder, you don't have to do anything when migrating the token to $POL.
It converts 1:1 over time.
There will be a total of 10 billion tokens.

~ The ecosystem growth model ~

Digging through the documentation, I managed to see a vision of the project growth model by the development team.
The inflow to the Community Treasury of about $50-100 million per year is realistic to expect.

A 10-year growth scenario is also present, depending on chain adaptations:

Most interestingly, we as retail investors in the project are wondering about the price of the ecosystem token itself.
I found this paragraph regarding the $POL price vision:
$5 average price per 1 $POL.

Also, it should be emphasized the low cost of fees and a 50% reduction in running costs per validator in 3 years.
This model looks quite realistic in the near future.
Taking into account all the upcoming updates and improvements we can draw the following conclusion:
Roughly speaking, the token price is currently undervalued by 5 times.
With the upcoming trend on L2 solutions, it would be foolish to overlook this.

~ TA ~

A well-known popular pattern emerges.
Taking into account the previous findings and technical analysis, I assume a move upward to $3.
I'm looking at the chart from a long-term perspective.

That was my sixth episode.
It's my mission to provide specific info on Web3 projects to expand this space.
I'm doing it because, at the beginning of my journey, I would have been happy to find all the info in one pile.
In this work, I tried to close the maximum questions that may have arisen when getting acquainted with Polygon.