In a significant development, the Polygon project team has unveiled a series of proposals to transform its ecosystem with the upcoming Polygon 2.0 update.
In a statement released on September 14th, the groundbreaking initiative will introduce a new native coin called “POL”, which is intended to replace the existing MATIC utility token.
The comprehensive roadmap for Polygon 2.0 was presented through a trio of Polygon Improvement Proposals (PIPs) in mid-June, each contributing to the ecosystem’s broader vision. Notably, the central proposition in PIP-17 involved the launch of the POL token, featuring a cutting-edge Proof-of-Stake (PoS) consensus mechanism.
Polygon envisions POL as a versatile token to support a thriving ecosystem of Layer-2 networks built on zero-knowledge proofs. According to the team behind the network, this move will enable users to engage in staking, assert ownership, and participate in community governance. An essential feature for existing MATIC holders is the 1:1 conversion rate, ensuring a seamless transition to the new coin.
“POL allows for a one-to-one migration of the currently existing MATIC token,” Polygon wrote.
As per the statement, the initial supply of POL will stand at 10 billion tokens, with an incremental annual increase of 2%. This measured approach is intended to balance stability and fostering network growth.
On the other hand, another proposal, PIP-19, will introduce the concept of POL serving as the “gas” token within the Polygon network, strongly emphasising maintaining backward compatibility. This transition will ensure that the existing Polygon ecosystem remains fully functional while POL is crucial in facilitating transactions across the network.
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