The Polygon Labs development team has recently unveiled a trio of Polygon Improvement Proposals (PIPs) aimed at ushering in the highly-anticipated Polygon 2.0 upgrade.
As per the release, these proposals encompass a range of transformative changes, with one of the most notable being the introduction of the POL token, poised to take on a central role in displacing the MATIC token across various functions and applications within the Polygon ecosystem.
— Polygon (Labs) (@0xPolygonLabs) September 14, 2023
While Polygon (MATIC) has played a crucial role in securing the network thus far, facilitating transactions, and governing its operations, the POL token is poised to expand its utility and influence.
As the layer-2 scalability platform charts its path toward its next evolution phase, these PIPs stand as critical milestones in its ongoing journey to enhance its blockchain infrastructure. Each of these proposals carries unique implications for the network’s future and collectively signifies a pivotal moment in the platform’s development.
Meanwhile, the team has asked the Polygon community to give feedback regarding the proposals, which will be implemented as early as the fourth quarter of this year after approval via a governance vote.
Details of the Polygon Improvement Proposals
One of the central aims of these proposals is to streamline the Polygon token economy. The first proposal is PIP-17 outlines Phase 0 of Polygon 2.0. In this phase, end users are not affected by the functioning of Polygon PoS and Polygon zkEVM chains. Also, the POL upgrade will be initiated.
The second PIP-18, outlines the implementation of the POL token. This stage entails the gradual phasing out of MATIC in favor of POL across various aspects of the ecosystem. The third proposal PIP-19 calls for an upgrade from Polygon PoS native token MATIC to POL token.
Recall that in July, Polygon announced this major upgrade to its network with the introduction of POL with the aim of creating a multi-chain ecosystem that can support various types of decentralized applications and protocols.
Interestingly, POL is a multipurpose token that can be used for staking, governance, transaction fees, rewards and more. It will also be compatible with all Polygon-based networks, including the zkEVM and Supernets.