New Token Proposal and Improvements

Polygon developers behind MATIC have submitted three proposals for implementing the Polygon 2.0 upgrade. Among the proposals is the creation of a new token called POL, which will replace MATIC in various aspects.

Polygon 2.0 Upgrade

Developers behind Polygon, the scaling solution for Ethereum, have officially presented the changes to be made for the upcoming Polygon 2.0 upgrade. The upgrade, first introduced in June, aims to establish a comprehensive network of interconnected Layer 2 chains driven by zero-knowledge proofs.

Polygon Labs today presented three Polygon Improvement Proposals (PIPs) outlining the transition, features of the Polygon 2.0 architecture, and token updates. The team requested feedback on the proposals, which will be implemented after approval through a community governance vote. The final vote for the Polygon 2.0 upgrade is expected to take place next year.

Improvement Proposals by Developers

The first proposal, PIP-17, summarizes the “Stage 0” of Polygon 2.0. The main focus of this proposal is to ensure that no transactions are made by end users and developers on the existing Polygon PoS and Polygon zkEVM chains during the upgrade.

The second proposal, PIP-18, suggests the issuance of a token called POL to replace the MATIC token, which is currently used as the native gas and staking asset in the Polygon ecosystem.

The final proposal, PIP-19, recommends upgrading the native gas token on Polygon PoS from MATIC to POL to ensure backward compatibility. The main goal is to ensure that the upgraded POL token maintains the same code features and works seamlessly with smart contracts on Polygon PoS.

Polygon’s native asset, MATIC, is trading just above the $0.50 mark with a nearly 1% increase in the past 24 hours, at $0.5205. Market observers believe that the Polygon 2.0 upgrade could boost the price of MATIC and potentially lead to new all-time highs.