Polygon, an Ethereum layer 2 development firm, has put forward a proposal to upgrade its native MATIC token into a multipurpose token that can validate multiple chains. The proposal is currently awaiting approval from the Polygon community and, if accepted, will result in a renaming of MATIC to POL.
The upgraded token, known as POL, will have utility across all Polygon protocols, including Polygon PoS, zkEVM, and Supernets. The main aim of this technical upgrade is to enable protocol participants to scale and support thousands of Polygon chains while maintaining security.
POL’s utility primarily revolves around incentivizing validators to perform valuable work. If the upgrade proposal is successful, the redesigned protocol architecture will introduce features such as infinite scalability and seamless integration between different protocols.
Polygon’s 2.0 version comprises four protocol layers, offering a comprehensive framework for blockchain development.
Validators staking POL will gain access to three incentive streams: protocol rewards, transaction fees, and additional rewards. They will also have the flexibility to perform multiple roles on a single chain, including generating zero-knowledge proofs and participating in Data Availability Committees (DACs).
Polygon co-founder Sandeep Nailwal has previously expressed his belief that Web3 gaming will be a significant driver for mass crypto adoption. He emphasized the potential impact of upcoming Web3 games and the substantial funding they have received, totaling over $2 billion in the past year alone.
Furthermore, Nailwal highlighted the importance of progressively decentralizing protocols and applications as they grow in significance within the blockchain ecosystem.
In summary, Polygon’s proposal to upgrade MATIC into a multipurpose token reflects their commitment to enhancing scalability and interoperability across multiple chains. If approved, this upgrade could bring new opportunities for validators and further propel the adoption of blockchain technology in various sectors, particularly gaming.
Keywords: Ethereum layer 2, upgrade proposal, multipurpose token, scalability, protocol participants, validators, Web3 gaming, progressive decentralization.