Yesterday, Polygon Labs developers presented 3 proposals for improvements to their ecosystem within the community governance discussions section, introducing a phase that will lead to the migration of the crypto MATIC to POL.
If the updates are unanimously accepted, POL will fill the role of gas token and staking token on Polygon PoS by the end of Q4 this year.
The decentralized infrastructure will thus continue its plan, introduced in June, to create a network of layer-2 chains interconnected with each other and offering unlimited scalability and unified liquidity.
Let’s see all the details together below.
Summary
Phase 0 of the transition to Polygon 2.0 announced: crypto MATIC becomes POL
Yesterday, three upgrade proposals (PIPs) were submitted for Polygon outlining the plan for the final conversion of the crypto MATIC to POL, which will become the main cryptographic asset in the decentralized ecosystem.
3 developers of the project, known by the nicknames “H_Rook,” “Gretze,” and “Mateusz,” have published within the governance section a set of guidelines detailing the transition scheme to version 2.0 of the protocol.
The ultimate goal, already disclosed in June of this year, is to develop a layer of interconnected second-layer networks that can serve as an infrastructure of value for the Internet, capable of bringing unlimited scalability and unified liquidity to the Web3 worldÂ
The published PIPs introduce the following key concepts, which will now have to be approved by the community before being officially implemented:
- PIP-17, which outlines “phase 0” of Polygon 2.0, focuses on ensuring the entire developer team and users that no action is required during the upcoming updates that will occur on Polygon Pos and Polygon zkEVM.
- PIP-18, calls for the migration of the crypto MATIC to POL, which will officially become the main asset in the ecosystem by filling the role of gas token and native staking token.
The conversion ratio will be 1:1 with the new coin maintaining the same tokenomics with an initial supply of 10 billion and an annual issuance of 2% as staking rewards and community treasury.
- PIP-19, finally proposes upgrading from MATIC to POL on Polygon Pos to ensure seamless compatibility with previous versions, making sure that the transition does not alter previously developed smart contracts. The goal here is to ensure that the code properties of the upgraded POL token remain the same.
Should the proposals be unanimously approved, which will almost certainly happen, the conversion of the crypto MATIC to POL will be made official between the beginning of Q4 2023 and the end of the year.
Polygon’s challenge in creating the value layer of the internet continues
Polygon’s new updates involving the crypto MATIC represent an important step toward the establishment of the Polygon 2.0 version that will totally change the blockchain architecture of the protocol.
The goal of Ethereum’s scaling project was officially unveiled on 12 June this year, with the new version aiming to become a conglomerate of interconnected layer-2 networks powered by zero-knowledge computational proof technology.
In doing so, Polygon aims to market itself as the next “value layer for the Internet,” capable of programming, creating and transferring value among users through an infrastructure that offers unlimited scalability and unified liquidity.
The new infrastructure will consist of four distinct layers, which interact with each other to form the new Polygon 2.0 layer.
In detail, Polygon’s vision sees a link to a layer dedicated to staking, one to interoperability, one to execution, and finally another for demonstrating transaction validities.
The goal planned by Sandeep Naiwal and his team is very ambitious, as they seek to go and form a structure of perfectly interconnected blockchain networks in an entirely innovative architecture.
The challenge is to offer users and developers a layer that can support potentially infinite throughput, just as is the case with the traditional web.
The concept of unified liquidity is also very important because it is assumed that digital ecosystem assets will be able to move freely and without interoperability problems within the various parts in the new version of Polygon 2.0.
Experts in the crypto world think that Polygon, as a leading figure within the blockchain landscape, will go on to introduce a technology that will be instrumental in the development of the industry in the coming years by making the Web3 look more and more like the Internet.
Market analysis of the crypto MATIC: Will the move toward Polygon 2.0 raise the price of the coin?
Despite news of project updates that bring the move toward the final version of Polygon 2.0 ever closer, the crypto MATIC does not seem to have been positively affected on the price front.
The coin remains squeezed by a particularly negative momentum for altcoins, which do not see the preconditions for delivering bullish performance.Â
MATIC remains crushed below the 10 EMA on a daily time frame for several months now, with few reversal attempts always readily absorbed by the bears that maintain control of the situation.
The crypto looks set to experience further declines in the coming weeks, with the bulls trying to hold firm to the psychological support of $0.50.
Should this level be broken we could expect a sharp descent for MATIC that would further crack a decidedly disappointing price action.
The double bottom of the RSI on the oversold zone with prices marking a slight divergence could save the structure of the cryptocurrency, still offering time for lateral movements or short upward thrusts.
Overall, the situation is blatantly bearish, and is mainly related to movements in Bitcoin, which is now facing a delicate period ahead of the upcoming deadlines for approval of a spot ETF in the US.
Too much exposure in altcoins such as MATIC, could right now prove very dangerous and potentially detrimental to our crypto portfolio.
Polygon’s crypto currently trades at a value of $0.52 per token, with a market capitalization of $4.8 billion and a trading volume of $203 million in the past four hours.
