In a June announcement, Sandeep Nailwal, the founder of Polygon, unveiled a key upgrade to the ecosystem by launching the POL token. This token plays a critical role in the Polygon 2.0 proposal, which will transform the Polygon ecosystem from a single chain to a network of interconnected Layer 2 solutions. In a more recent development, the team has proposed three key changes to implement the Polygon 2.0 upgrade.
Polygon Labs, the development arm of Polygon, has put forward three Polygon Improvement Proposals (PIPs) to define the transition strategy, specify the new architecture, and change the native token. These proposals will shape the future of the Polygon ecosystem, and ensure that the transition to Polygon 2.0 is smooth and efficient.
So what are Polygon’s latest PIPs?
PIP-17: The first of the three Polygon Improvement Proposals, PIP-17, outlines the initial steps in transitioning to Polygon 2.0, or “Phase 0.” This stage will ensure that end-users and developers using the existing Polygon PoS and zkEVM chains do not need to take any action during the upgrade.
PIP-18: The second proposal, PIP-18, calls for introducing the POL token, which will replace the MATIC token as the native gas and staking asset on Polygon.
PIP-19: The third proposal, PIP-19, focuses on transitioning the native gas token on Polygon PoS from MATIC to POL. The goal is to ensure a smooth transition that preserves the backward compatibility of smart contracts on Polygon PoS. The POL token is designed to maintain the same code properties as the MATIC token, allowing for a seamless transition. This proposal also provides guidelines for ensuring that the POL token remains as secure and efficient as the MATIC token.
Polygon’s development team has also invited the community to provide feedback and suggestions on the proposed changes. Ultimately, these proposals will need approval through a governance vote. The full implementation of Polygon 2.0 is expected to take place in the coming year.
95% of MATIC holders drown in loss
The prospect of the Polygon 2.0 upgrade has had a mixed impact on the price of MATIC, the network’s native token. While the price of MATIC has seen a daily increase of 1.04%, it has also experienced a 6.12% decline over the week. At the time of writing, 95% of MATIC holders are in the red, while a minority of 3.80% have recorded profits.
Despite the upcoming Polygon 2.0 upgrade, the network’s transaction volume has been decreasing in recent days. The daily transaction volume on the network has reached a low of just 12.27 million MATIC.
