Polygon Unleashed: MATIC undergoes Remarkable Rebranding, Introducing POL Token and Pioneering Community Treasury Fees

Blog

Polygon Unleashed: MATIC undergoes Remarkable Rebranding, Introducing POL Token and Pioneering Community Treasury Fees

Polygon’s Big Reveal: The POL Token

In an exciting turn of events, Polygon’s Ethereum layer-2 development firm has proposed the transformation of its existing MATIC token. Upon the Polygon community’s approval, MATIC is set to morph into a multipurpose token, taking on a fresh identity as POL.

In a recent tweet by Polygon Labs, the next phase of the Polygon 2.0 technical proposal was unveiled, introducing POL as the upgraded token of the Polygon protocol. The tweet read:

1/ Today, the next technical proposal of Polygon 2.0 is unveiled:
POL, the upgraded token of the Polygon protocol!
POL is the next generation native token, designed to secure, align and grow the Polygon ecosystem.
Watch the video to get an idea how cool it is, then
pic.twitter.com/Gn7KcHpWEY
— Polygon (Labs) (@0xPolygonLabs) July 13, 2023

Securing, Aligning, and Growing the Polygon Ecosystem

As per the announcement shared with Cointelegraph, POL’s utility will span all the Polygon protocols. These include the Polygon PoS, zkEVM, and Supernets, enabling a multitude of protocol participants, or actors, to support numerous Polygon chains without compromising on security.

The proposed POL token is geared towards motivating validators to perform beneficial work. With the approval of the upgrade proposal, the redesigned protocol structure will roll out features such as infinite scalability and effortless synergy between different protocols.

Multiple Reward Streams and Roles with POL

The new era of Polygon 2.0 will unlock three incentive streams for POL-staking validators: protocol rewards, transaction fees, and additional rewards. Validators will also have the opportunity to undertake multiple roles on a single chain, such as generating zero-knowledge proofs and participating in data availability committees.

The Anticipated Influence of Web3 Gaming

Polygon’s co-founder, Sandeep Nailwal, during a recent ask-me-anything session, highlighted that the rise of Web3 gaming could be instrumental in accelerating mainstream crypto adoption. His belief lies in the potential of the gaming ecosystem and the top games that are expected to launch in Web3 within the next 6-18 months.

Novel Earning Opportunities with POL

With the proposed change, MATIC token holders on the Polygon network will see a shift in how they can contribute to network integrity and earn rewards. They will be presented with a 1:1 swap of MATIC for the novel “hyperproductive” POL token. This transition will enable stakers to simultaneously validate transactions across a multitude of Polygon’s blockchains. It also paves the way for varied roles for POL stakers and an array of incentive programs for dedicated POL users.

The introduction of POL marks a milestone as a third-generation token. It signifies the natural evolution from Bitcoin’s BTC and Ethereum’s ETH. The upgraded token incorporates community treasury fees, allocating 1% of POL emissions for ecosystem initiatives and another 1% for validator rewards. Esteemed DeFi developer and researcher, Mikko Ohtamaa, emphasizes that this could pave the way for a sustainable ecosystem for modern cryptocurrency projects.

Blog