Revitalizing layer 2 of the Ethereum network is the motive behind Polygon’s transition to Polygon 2.0. Polygon Labs plans to build a network of interconnected Layer 2 chains with the Zero-Knowledge-Proof protocol that addresses privacy concerns. To this end, the company has just published all of the innovative improvement proposals for phase 0 of its transition including the introduction of a new crypto.
In short
- Polygon 2.0 introduces a new native crypto, POL, to replace MATIC, with an initial supply limited to 10 billion units.
- POL will be used to pay gas fees, staking and governance in the new Polygon 2.0 ecosystem.
- A new security feature, the Staking Layer, will be added to help validators secure various blockchains within Polygon 2.0.
Polygon 2.0 changes its native crypto from MATIC to POL
Proposals for improvements published by Polygon Labs provide complete technical details on phase 0 of the Polygon 2.0 implementation.
As part of the first phase, four main upgrades will be carried out. Initially, Polygon will move from MATIC cryptos to POL, which will be “a next-generation native token”.
Even if its properties remain identical to those of MATIC, crypto POL “will guarantee maximum compatibility with existing systems”. According to the announcement, the initial supply of this Proof-of-Stake token will be limited to 10 billion units, with an annual issuance set at 2%.
The next upgrade will be to make POL crypto a token used to pay gas fees for the Polygon 2.0 network. The third upgrade will aim to make crypto POL, a token used for staking and participating in governance.
According to Polygon Labs, the first three upgrades will serve to minimize disruption for users of the Polygon PoS and Polygon zkEVM blockchain protocols.
Polygon Labs plans to add a new security feature
After the changes related to native crypto, the fourth and final upgrade planned for this phase 0 consists of the introduction of a new functionality. This is the Staking Layer.
The Staking Layer will be used to help validators ensure the security of various blockchains within the new iteration of the ecosystem.
In principle, the Polygon 2.0 upgrade had already been announced for several months. According to reports, the implementation of phase 0 is expected to come into effect from the beginning of the last quarter of this year.
For the moment, Polygon Labs is awaiting feedback from the community, inviting them to participate in decision-making. Clearly, this is a major transition for the world of cryptocurrencies and blockchain.
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