Polygon Labs has presented the parameters of the tokenomics of the next iteration of the second-level Ethereum network of the same name. One of its steps is to replace MATIC utility tokens with Polygon (POL).
The proposal requires community approval. Depending on the consensus, the transition could begin within a few months.
The main goal of the update is to ensure the scalability of the ecosystem without sacrificing security.
The proposed POL token is designed to work on all blockchains in the ecosystem, including the PoS sidechain, zkEVM and Supernets, the team representative explained.
In other words, validators will be able to secure transactions across different networks.
POL is a next-generation protocol token designed to serve as the primary tool for coordinating and growing the Polygon ecosystem and to drive the vision of a “level of value” for the internet.
According to the document, the asset will become a “hyper productive token.” This term, when applied to validators, implies two improvements:
- the mentioned ecosystem participants can operate in several networks at their own discretion;
- in each blockchain, they can perform several functions.
The benefits of switching to a single utility token for the Polygon ecosystem will be:
- improved security;
- unlimited scalability;
- built-in mechanism to support ecosystem participants;
- prerequisites for a seamless process of interaction with the blockchain for users and developers;
- transition to community project management.
There will be three revenue streams for POL validators in the form of transaction fees, protocol rewards, and additional subnet bonuses (if any).
The technical details of POL smart contracts and migration will be provided by the developers in the upcoming PIP.
The conversion is expected to be straightforward – MATIC holders will be prompted to send tokens to a specific smart contract, which will then return an equivalent amount of POL.
The process will take at least four years to “adapt to the new token.”
At the protocol level, POL will replace MATIC. Both assets will not be in circulation at the same time.
Recall that at the end of June, Polygon Labs revealed the proposed architecture of Polygon 2.0.
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