In a June announcement, Sandeep Nailwal, the creator of Polygon, revealed a substantial technical enhancement to the ecosystem through the introduction of the POL token. This token is a crucial component of the Polygon 2.0 proposal, which aims to evolve the Polygon ecosystem from a single chain into a network of interconnected Layer 2 solutions [L2s]. In a more recent development, the team has put forth three proposals for implementing the Polygon 2.0 upgrade.
Polygon Labs has introduced three Polygon Improvement Proposals [PIPs]. Through these, the transition strategy becomes more defined. It also delivers specifications for the enhanced Polygon 2.0 architecture and elucidates alterations to its native token.
So what are Polygon’s latest PIPs?
- PIP-17: As mentioned above, there are a total of three PIPs. The first proposal, or PIP-17, highlights “Phase 0” of Polygon 2.0. This guarantees that neither end-users nor developers utilizing the existing Polygon PoS and zkEVM chains will need to take any action during the upgrade.
- PIP-18: The second proposal, PIP-18, advocated for the incorporation of the POL token. This is set to replace the current MATIC token as the native gas and staking asset within the Polygon ecosystem.
- PIP-19: Lastly, the third proposal, PIP-19, focuses on the transition of the native gas token on PoS from MATIC to POL. It is expected to be executed in a way that ensures the highest degree of backward compatibility. This approach ensures that the upgrade to the new token will not disrupt smart contracts on PoS in terms of compatibility. The ultimate goal is to maintain the intact code properties of the upgraded POL token.
Additionally, the development team has urged the community to contribute their insights and opinions regarding these proposals. These proposals will secure approval through a governance vote. However, the last deployment of the Polygon 2.0 upgrade is expected to occur in the coming year.
Also Read: Polygon Founder Teases Major Enhancements in the Pipeline
95% of MATIC holders drown in loss
As the network anticipates an upgrade, its current token, MATIC, has experienced a decline. Currently, MATIC is trading at $0.520, with a daily increase of 1.04%. However, over the course of the week, the token has seen a 6.12% decrease in value. Presently, the majority of MATIC holders, accounting for 95%, have faced losses, while a small 3.80% have managed to secure profits.
Even with the impending upgrade, there has been a notable lack of substantial transactions. The network’s transaction volume has declined, reaching a low of 12.27 million MATIC at the moment.
Also Read: Lufthansa-Polygon Launches NFT Loyalty Program
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