Polygon (MATIC) price triggers a bullish momentum, jumping over 1% in the last 24 hours, ahead of a technical upgrade of the native asset that will bring to life a new token called “POL”.
On August 28, Polygon Co-Founder Sandeep Nailwal took to X to issue an important update on the proposed migration of MATIC to POL Token, explaining how users can easily migrate to POL without losing rewards on MATIC that are currently staked. This comes on the heels after the development team at Polygon, recently, announced the new initiative.
POL is a massive technical upgrade to MATIC
POL delivers the benefits of multi-chain staking without the added risks of restaking. With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain to an ecosystem of L2s that can easily interoperate and share…
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) August 28, 2023
What is the Purpose Behind POL?
As per the recent announcement, Nailwal emphasized the benefits of the upcoming upgrade, claiming POL has been designed from the ground up to be the first hyperproductive token achieving the third generation in token design after Bitcoin (BTC) and Ethereum (ETH).
He clarified the primary aim for the new token is to become the major tool for coordination along with the growth of the entire Polygon ecosystem and serve as a fundamental layer to create, exchange, as well as program value.
The co-founder asserted that POL is the protocol that will ensure users reap the benefits of multi-chain staking without the added risks of restaking, adding, “With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain to an ecosystem of L2s that can easily interoperate and share liquidity with each other.”
1/ Today, the next technical proposal of Polygon 2.0 is unveiled:
POL, the upgraded token of the Polygon protocol! 💫
POL is the next generation native token, designed to secure, align and grow the Polygon ecosystem.
Watch the video to get an idea how cool it is, then 🧵 pic.twitter.com/Gn7KcHpWEY
— Polygon (Labs) (@0xPolygonLabs) July 13, 2023
Furthermore, Nailwal highlighted one of the significant features of POL, which is its innovative take on staking. Traditional staking approaches often require assets to be restaked, often involving third-party platforms. With POL, there will be the introduction of “enshrined restaking.”
This approach permits the token to natively be used across multiple chains, obviating the need for restaking with each new chain. The Polygon co-founder expounded,
“In Polygon 2.0, POL is staked in the staking hub. POL can be restaked to validate any number of chains on the network. POL can natively be used to stake any number of chains and participate in any number of roles. This lets stakers earn higher rewards with the same staked capital.”
Polygon Price Fires Up Following a Dull Phase
The technical upgrade, first laid out on July 13, has been termed Polygon 2.0 and paints a picture of multiple Polygon-based chains, bridges, and the integration of privacy-enhancing zero-knowledge (ZK) proofs.
Polygon co-founder Mihailo Bjelic had previously said the “vision for Polygon 2.0 is to create the Value Layer of the Internet,” adding, “In the same way that the Internet allows anyone to create and exchange information, the Value Layer will allow anyone to create, exchange, and program value.
It seems the announcement had an immediate effect on Polygon (MATIC) that managed to boost MATIC holders’ confidence. According to CoinMarketCap, the digital token is up 1.97% in the last 24 hours to trade at $0.55. Meanwhile, MATIC jumped 1.88% over the past seven days after witnessing lower volatility over the past five days, trading between $0.537 and $0.56.
