Polygon’s Proposal to Replace MATIC Token in the 2.0 Upgrade

By 0xK2 09/14/23 2:14 PM

In a significant development for the Ethereum scaling solution, Polygon, three new Polygon Improvement Proposals (PIPs) were recently introduced, outlining crucial changes linked to the forthcoming Polygon 2.0 upgrade. Polygon 2.0, originally unveiled in June, represents a comprehensive overhaul of nearly every facet of the Polygon ecosystem. These latest PIPs shed light on the specific changes slated for implementation in early Q4 of this year, subject to community approval.

The unveiled PIPs provide an intricate blueprint for Phase 0 of Polygon 2.0, focused on establishing a network of interconnected Layer 2 (L2) chains powered by zero-knowledge technology, with the ultimate goal of scaling Ethereum to the proportions of the internet itself. These proposals detail the transition process, specifications for Polygon 2.0’s upgraded token architecture, and enhancements to the Polygon Proof-of-Stake (PoS) native token.

1/ The wait is over. Polygon 2.0 implementation kicks off now with the release of 3 Polygon Improvement Proposals (PIPs), and a roadmap for Phase 0.https://t.co/gk7FW0zCpc pic.twitter.com/YJo3BtQy4y

— Polygon (Labs) (@0xPolygonLabs) September 14, 2023

One of the notable features of the PIP framework is its commitment to community engagement. It offers a mechanism for the broader Polygon community to offer feedback on proposed changes and actively participate in the decision-making process. This collaborative approach underscores the community’s integral role in building what Polygon envisions as the “Value Layer of the Internet.”

PIP-18: Polygon 2.0 Phase 0

PIP-18 represents a critical milestone in the Polygon 2.0 journey, specifying Phase 0 and providing a high-level overview of the upcoming upgrades. These changes are intended to be seamless for existing end users and developers on Polygon PoS and Polygon zkEVM chains. Some of the key changes include:

The transition from MATIC to POL as the native gas token for Polygon PoS.
The upgrade of MATIC to POL as the staking token for Polygon PoS.
The launch of the Staking Layer, facilitating the migration of Polygon public chains to leverage this new infrastructure.

Importantly, these upgrades will be rolled out incrementally to ensure a smooth transition.

PIP-17: POL Token

This proposal introduces POL, complete with associated contracts to manage token emission and migration. POL facilitates a one-to-one migration of the existing MATIC token, boasting an initial supply of 10 billion tokens and an annual emission rate of 2%. These newly minted tokens will be evenly distributed between validator staking rewards and a community treasury. POL is designed to serve as a versatile token, accommodating an ecosystem of ZK-based Layer 2 chains by enabling staking, community ownership, and governance.

PIP-19: Update Polygon PoS Native Token to POL

The third proposal, PIP-19, focuses on upgrading the native gas token on Polygon PoS from MATIC to POL. This transition aims to ensure maximum backward compatibility by upgrading the native MATIC Bridge Contract. The core idea is to shift the native token on Polygon PoS from being a claim on the Bridge’s MATIC to a claim on the Bridge’s POL. Importantly, this upgrade will not alter any existing contracts on Polygon PoS, ensuring that they continue to function as originally designed.

The introduction of these proposals marks a pivotal moment in Polygon’s evolution, with Polygon 2.0 pushing the boundaries of Ethereum scaling solutions. Central to this vision is the involvement of the community, whose active participation and contributions will play a vital role in shaping the future of the Polygon ecosystem.