- July 14, 2023
- Posted by: [email protected]
- Category:
Polygon, an Ethereum layer-2 development firm, has put forward a proposal to upgrade its Polygon token (MATIC) into a multipurpose token capable of validating multiple chains. The proposal is currently awaiting approval from the Polygon community, and if accepted, MATIC will be rebranded as POL.
The planned upgrade aims to extend the utility of POL across all Polygon protocols, including Polygon PoS, zkEVM, and Supernets. The proposal emphasizes the scalability of protocol participants, enabling support for numerous Polygon chains while maintaining security.
The utility of POL revolves around aligning and incentivizing validators to undertake valuable work. If the upgrade proposal is successful, the redesigned protocol architecture will introduce features like infinite scalability and seamless integration between different protocols.
Validators staking POL will have access to three incentive streams: protocol rewards, transaction fees, and additional rewards. Beyond validating multiple chains, validators can perform multiple roles within a single chain, such as generating zero-knowledge proofs and participating in data availability committees.
Sandeep Nailwal, co-founder of Polygon, has previously indicated his view of Web3 gaming as a crucial motivator for wider crypto acceptance. During an open AMA session, Nailwal highlighted the growth of top Web3 games and the enormous funding they have received, which exceeds $2 billion.
Nailwal also emphasized the importance of progressively decentralizing protocols and applications as they gain greater significance. This aligns with the broader vision of empowering users and creating a more decentralized and resilient ecosystem.
Ultimately, the proposed upgrade of MATIC into a multipurpose token reflects Polygon’s commitment to enhancing the scalability, interoperability, and utility of its platform. With approval from the Polygon community, this transformation could usher in a new era of Polygon’s capabilities, fostering growth and innovation within the broader blockchain landscape.
