Polygon Labs founder, Sandeep Nailwal, has conveyed that the forthcoming upgrade of Polygon’s native asset, MATIC, will herald the evolution of this token into what he terms a “third-generation token.”
At present, the Polygon community is deliberating a technical proposition aimed at enhancing the project’s native MATIC token and subsequently rebranding it as POL.
This proposal constitutes an integral facet of the network’s transition towards Polygon 2.0, an initiative geared to establish the project’s stature as the “value layer of the internet.”
Nailwal elucidated on the social media platform X, stating,
“POL encompasses the advantages of multi-chain staking while mitigating the associated risks of restaking. Through the Polygon 2.0 proposal, the Polygon Ecosystem is poised to expand from a singular chain to an intricate network of L2s (layer-2s) that seamlessly interact and share liquidity among themselves.”
Nailwal articulated that users will gain the capability to re-stake the POL token to validate a multitude of chains within the network, a progression he dubs “enshrined staking.”
“POL introduces a pioneering dimension to restaking encompassing two aspects:
1) Enshrined restaking entirely eliminates dependence on trusted third parties, thereby reducing centralization vectors.
2) POL transcends its role in merely securing chains; it extends its security to the Agg (aggregation) layer, DACs (decentralized autonomous corporations), and more.”
The conception of POL is meticulously designed to function as a premier hyperproductive token, signifying a paradigm shift in token design—a third generation.
Generation 1: BTC (lacks provisions for holders to engage in network security)
Generation 2: ETH (holders can stake for network security)
Generation 3: POL (holders can safeguard multiple networks and undertake diverse roles)”
It is important to note that should the proposed technical upgrade receive endorsement and be executed, POL and MATIC will not coexist. Holders of MATIC will experience a 1:1 upgrade of their tokens.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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