Migrate your $MATIC for $POL
Today I want to look at how Polygon is introducing Polygon 2.0 aka their “endgame”, and also their new token: POL.
I’ve always been a fan of Matic/Polygon, mainly because of its incredibly cheap gas fees. So I just want to break down the journey of Polygon, from its early days as Matic Network to the big plans of Polygon 2.0 and what it means for all of us.
It might sound a bit complicated, but I’ll keep in as simple as possible. So here’s a look at Polygon’s potential high-tech future…
Where Polygon Started
To understand Polygon 2.0, let’s start with the basics. The original Polygon Proof-of-Stake (PoS) blockchain, previously known as Matic Network, emerged in 2017 as an Ethereum sidechain.
Its mission? Boosting Ethereum’s mainnet scalability.
Just like Ethereum, it utilizes a proof-of-stake consensus mechanism, and its native token is MATIC. Last year, they added another layer, the Polygon zkEVM, an Ethereum zk-rollup.
So now for Polygon 2.0
Polygon 2.0 is the next phase in Polygon’s evolution. Envisioned as a vast network of Zero-Knowledge (ZK) powered Layer-2 chains, Polygon 2.0 aims for unlimited scalability and seamless interoperability. Picture it as the “Value Layer” of the Internet, where digital assets exchange seamlessly, mirroring how the Internet facilitates information exchange.
After the announcement, Polygon’s team initiated discussions about upgrading the Polygon PoS chain to a zkEVM validium. A validium is a scaling solution for Ethereum, distinct from the Polygon zkEVM chain, a zk-rollup. The transition brings advantages like higher security, scalability, and cost-effectiveness. It’s about fitting the original chain into the future zk-powered Polygon ecosystem.
Enter the Polygon Chain Development Kit (CDK)
Now, we’ve got the Polygon PoS chain, which will be upgraded to a zkEVM validium, and the existing Polygon zkEVM chain. But where do the promised “network of ZK-powered L2 chains” fit in? The answer lies in the Polygon Chain Development Kit (CDK). Introduced in August, it’s an open-source, modular codebase allowing anyone to launch their zk-powered Layer-2 on Ethereum. This innovation transforms Polygon into a supernet of ZK networks, working together via a shared bridge.
To bring the future Polygon 2.0 ecosystem together, multiple technical upgrades are in order. At the protocol level, four layers operate collaboratively: staking, interop (interoperability), execution, and proving. Each layer plays a unique role, contributing to a compact system of networks with mutual communication.
- Staking Layer: This is where Polygon’s native token is staked to provide security and decentralization. It manages tasks like maintaining the validator registry and processing staking requests.
- Interop Layer: Facilitates secure cross-chain messaging within the Polygon ecosystem, creating a seamless experience for users.
- Execution Layer: Enables Polygon chains to sequence transactions and produce blocks, similar to how transactions are processed in networks like Ethereum.
- Proving Layer: Employs a flexible, high-performing ZK-proving protocol to generate and aggregate proofs for all executed transactions across all Polygon chains.
And the New POL Token
With Polygon 2.0 comes a new native token, POL, set to replace MATIC’s role in the ecosystem. POL will be used for governance, gas, staking, and other utilities. It’s an essential element in powering the security of all chains within the Polygon supernet structure. POL’s unique role positions it as a “hyperproductive token,” surpassing traditional assets like Bitcoin and Ethereum.
Now apparently, POL tokens can be migrated at a 1:1 ratio from existing MATIC tokens by using a migration contract. This means that anyone who holds MATIC tokens can send MATIC tokens to the migration contract and will receive the same amount of POL tokens. There is no reduction in the token supply.
And finally, the governance framework undergoes a revamp, dividing into three pillars: protocol governance, system smart contracts governance, and community treasury governance. These pillars cover decentralized maintenance, protocol upgrades, and ecosystem growth, respectively.
Polygon has an exciting journey ahead with Polygon 2.0. Let’s see what happens. Share your thoughts on Polygon 2.0 in the comments, and if you enjoyed this article, please give it some claps (up to 50 claps) and make sure you are following me on Medium. Thanks!
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