Polygon Labs proposes replacing ‘MATIC’ token with upgraded ‘POL’ in ecosystem expansion plan

Polygon Labs has revealed a method connection to upgrade its MATIC token to POL, a hyperproductive third-generation autochthonal asset, according to a July 13 blog post.

What is POL?

According to its whitepaper, POL volition beryllium the autochthonal token of the Polygon and volition beryllium a important instrumentality for coordinating and incentivizing the full ecosystem.

“POL is the adjacent procreation autochthonal token, designed to secure, align and turn the Polygon ecosystem.”

The POL token volition person an archetypal proviso of 10 cardinal tokens that is wholly dedicated to the migration of MATIC for POL. The integer plus has a yearly emanation complaint of 2% which would beryllium utilized for validator incentives and assemblage treasury.

The layer2 web projected POL’s terms during a 10-year maturation script to an mean of $5, adding that the ecosystem could spot up to 25 nationalist chains and much than 3000 supernets if it is heavy adopted during this period.

Additionally, Polygon stated that POL  holders volition enactment arsenic validators for aggregate chains, and each concatenation tin connection validators assorted roles and corresponding rewards.

Meanwhile, MATIC holders would beryllium allowed to upgrade their holdings to POL astatine a 1:1 ratio for a prolonged period. The protocol stated that MATIC and POL would not and tin not coexist, adding that “POL tin lone regenerate MATIC.”

What the upgrade means for Polygon

The projected token upgrade would besides payment the Polygon ecosystem, improving its security, scalability, and support.

The upgrade would besides destruct friction wrong the Polygon ecosystem alternatively of the regular blockchain protocols that “require some users and developers to hold, involvement oregon devour their autochthonal tokens successful bid to usage the network.”

Polygon besides poured acold h2o connected the conception that the caller regulatory troubles influenced the upgrade. The U.S. Securities and Exchange Commission (SEC) had classified MATIC, alongside respective different integer assets, arsenic securities successful its suit against Binance and Coinbase.

While Polygon Labs has disputed this classification, respective U.S.-based firms person delisted the crypto asset.

Following the news, MATIC’s terms accrued by 5% to $0.76790 astatine the clip of writing, according to CryptoSlate’s data.

The station Polygon Labs proposes replacing ‘MATIC’ token with upgraded ‘POL’ successful ecosystem enlargement plan appeared archetypal connected CryptoSlate.