Here is a detailed analysis of Polygon’s upgrade from MATIC to POL, its technology stack, unified liquidity layer Agglayer, and MATIC’s price action:
1. Upgrade from MATIC to POL
Upgrade background and process:
Polygon announced its mainnet upgrade in early September, converting the native token MATIC to POL at a 1:1 ratio. This upgrade is to support the development of a wider ecosystem and respond to the strong demand for decentralized networks. Polygon Labs CEO Marc Boiron said that after the upgrade is completed, POL will replace MATIC as the native gas token and staking token on the Polygon PoS chain.
Token conversion and economic model:
The initial exchange ratio of MATIC to POL is set at 1:1, and the unlocking amount will increase by 2% every year over 10 years to support the growth of the ecosystem. The total issuance of POL is 10 billion, and it will increase at a rate of 2% per year over the next 10 years. This setting is intended to ensure sustainable economic support for the long-term development of the Polygon ecosystem and Web3.
2. Polygon’s Technology Stack and Agglayer
Technology Stack:
Polygon not only built a technology stack to create L2 (Layer 2) solutions, but also worked to improve Ethereum's scalability and reduce transaction fees. Its technology stack includes multiple key components, such as Polygon PoS, Polygon zkEVM, etc., which together constitute Polygon's multi-chain network ecosystem.
Unified Liquidity Layer Agglayer:
Polygon has also built a unified liquidity layer called Agglayer, which is designed to enable cross-chain messaging and value circulation within the ecosystem. Agglayer facilitates cross-chain interactions through a new interoperability layer, making the entire Polygon network feel like a single chain, thereby improving user experience and liquidity.
3. MATIC’s price trend
Historical price performance:
The price of MATIC was affected to a certain extent before and after Polygon announced the upgrade. However, price trends are affected by many factors, including market sentiment, trading volume, and the performance of other cryptocurrencies.
Future Price Prediction:
Predictions about the future price of MATIC need to be treated with caution. Although the K-line shows that MATIC has fallen to a relatively low position before, the price trend is uncertain. If it falls again, you can pay attention to the rebound opportunity around 0.39, but this is only a speculation based on historical price trends, not an exact prediction. You should pay attention to market dynamics, technological progress, and the development of the Polygon ecosystem to make more informed investment decisions.
Polygon's upgrade from MATIC to POL is an important milestone in the development of its ecosystem, which aims to support the development of a wider ecosystem and meet the needs of decentralized networks. At the same time, Polygon has also built a technology stack including Agglayer and a unified liquidity layer to improve scalability and liquidity. Investors should remain cautious about the price trend of MATIC and pay attention to market dynamics.
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