Polygon proposes replacing MATIC with POL

The Polygon project team proposed changes for the upcoming major update aimed at creating a comprehensive ecosystem of interconnected L2-networks and launching a new POL coin instead of utility-token MATIC.

The developers presented three PIP. They describe the technical details of Phase 0 of the transition to Polygon 2.0.

PIP-17 envisions launching POL with a Proof-of-Stake consensus mechanism.

«POL is a next-generation token capable of hosting an ecosystem of second-layer networks based on zero-knowledge proofs, enabling staking, ownership and governance by the community», according to a Polygon statement.

PIP-18 includes the technical description of POL, as well as the associated contracts that will handle issuance and migration. MATIC can be converted 1:1 into the new coin.

The initial supply will be 10 billion, increasing by 2% per year.

The final PIP-19 envisions using POL as a ‘gas’ token, while ensuring maximum backward compatibility.

According to the developers, staking in the protocol will be implemented on a separate layer.

Voting on the initiative is planned for the end of Q4 2023.

The idea of launching a new coin in Polygon was first proposed in mid-July. The main goal of the upgrade is to ensure the ecosystem’s scalability without compromising security.

Earlier in June, Polygon Labs revealed the proposed Polygon 2.0 architecture.