Polygon Labs, the team behind the Polygon blockchain network, has introduced a third-generation token that could replace the native cryptocurrency, MATIC, with a “hyperproductive” digital currency named POL. If the POL concept gains approval, validators can earn rewards from staking and also accumulate rewards from multiple Polygon chains.
Polygon Labs Introduces Next-Gen Crypto With POL, a Potential MATIC Successor
Polygon Labs introduced a multipurpose token named POL on July 13, 2023, following the release of a white paper on the subject by a group of Polygon founders and researchers. The white paper outlines POL’s role as a potential successor to MATIC, becoming a crucial tool in fostering growth and collaboration within the Polygon ecosystem. One significant advantage of POL is that stakers will have the opportunity to accumulate rewards in POL as well as from other Polygon-centric networks.
Described as a “hyperproductive” digital currency, POL has the capability to validate numerous blockchains, according to a blog post by Polygon Labs on POL’s tokenomics. “To attract more validators, some Polygon chains can choose to introduce additional rewards,” the post explains. “These rewards can be in any token, including but not limited to POL, stablecoins or native tokens of those Polygon chains.” Should it receive approval, POL’s supply is poised to match MATIC’s 10 billion, and users can exchange MATIC for POL at a 1:1 ratio.
Polygon Labs states:
The upgrade from MATIC to POL would require a simple technical action – sending MATIC to the upgrade smart contract, which will automatically return the equivalent amount of POL.
Furthermore, the team announced regular POL emissions as a means to finance a community treasury, the purpose of which is to encourage protocol development, promote protocol research, distribute ecosystem grants, and foster adoption incentives. “The community treasury should be governed by the Polygon community, via an agreed upon governance process,” the blog post elaborates.
MATIC holders will be accorded a time frame to exchange MATIC for POL, with Polygon Labs recommending a period of four years or more. Wrapping up, the team indicated that the transition could commence within a few months if the community endorses this proposal
What do you think about Polygon proposing to revamp MATIC with POL? Share your thoughts and opinions about this subject in the comments section below.
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