$MATIC is getting an upgrade and is switching to $POL, with a 1:1 swap basis over the next 4 years. This means that your 1 MATIC will be converted to 1 POL, regardless of the price.

But what is POL, and why is there a need for an upgrade? Let's find out in the article below 🧵👇

Announcement:

  • The Tweet: Yesterday, 0xPolygonLabs proposed an upgrade of MATIC to POL with a tweet, stating the need for this upgrade and what it offers. If the community reaches a consensus to adopt it, the upgrade to $POL will begin.

  • New Native Asset: As $MATIC is the native token of this Proof-of-Stake chain, it will change to $POL, as $POL will be the new native asset of the Polygon 2.0 ecosystem.

What is POL and Polygon 2.0 Ecosystem?

POL is the next generation native token, designed to secure, align and grow the Polygon ecosystem, and is a network of ZK-powered L2 chains, unified via a novel cross-chain coordination protocol. The POLY token will also be used as a governance token.

Utility:

  • Validators: Polygon validators are required to stake POL in order to join the validator pool.

    • This enables holders to become validators.

    • Protocol rewards distributed to them proportionally to the amount of POL they have staked.

    • Transactional fees from multiple chains.

    • Helps in Preventing Sybil attacks.

    • Enabling slashing, i.e. punishment of malicious validators

    Multiple Chains:

    POL turns Polygon into a network of ZK-powered L2 chains, unified via a novel cross-chain coordination protocol. The network can support a practically unlimited number of chains, and cross-chain interactions can happen seamlessly and instantly.

    Tokenomics:

    • Initial Supply: POL will have an initial supply of 10B tokens,

      The initial supply should be exclusively allocated for migration purposes, meaning that it will be used for swapping tokens from MATIC to POL with a 1:1 swap.

    • Emission Rate: There will be a 2% Emission rate on the supply yearly.

      • Validators Rewards ( 1% yearly ): To incentivize validator onboarding and retention

      • Ecosystem Support ( 1% yearly ): To provide ongoing support for further development and growth of

        the Polygon ecosystem

The Upgrade:

You need to send your MATIC to a smart contract to convert your MATIC into POL in a 1:1 swap, with a 4 years time to do it.

Just depends on the community consensus to support this proposal to begin the process.

Previous Upgrade:

  • MATIC Network upgraded to Polygon on Feb 9, 2021

  • Chart of MATIC after 9 February, 2021 :

  • MATIC did over 45X after the announcement in the bull run, which was a pretty massive return for any project in such a short amount of time.

  • This can also mean that if MATIC becomes POL it can have something similar like this?

  • What Do you think about this upgrade of MATIC to POL? Is it bullish? and can POL hit $10+ in the upcoming bull run?

  • Comment down your thoughts below...

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⭐️ That concludes the article!

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