Polygon 2.0 Rollout Begins With a Set of Improvement Proposals Targeting MATIC to POL Token Migration

Key Highlights:

• Polygon launches phase 0 of its protocol architecture upgrade as Polygon 2.0 kicks off.
• Phase 0 of the upgrade will be accompanied by 3 Polygon Improvement Proposals (PIPs).
• Polygon 2.0’s first set of upgrades is basically aimed at initiating the migration process for MATIC to POL tokens.

A few months have passed since the Polygon community started anticipating and preparing to embark on an adventure that envisions bringing Ethereum to the Internet following the unveiling of Polygon 2.0.

According to a Thursday blog post, the team is thrilled to announce that the implementation of Polygon 2.0 has officially kicked off. Encompassing a set of proposed upgrades aimed towards revolutionizing every part of the Polygon ecosystem, Polygon 2.0 is set to provide users with an exclusive and advanced experience.

Polygon 2.0 to Commence With the Initiation of Phase O

According to the announcement, the launch of Polygon 2.0 is set to commence with Phase 0 of the protocol architecture upgrade. This has seen the release of three Polygon Improvement Proposals (PIPs) which will begin operations in the last quarter of this year.

Notably, phase 0 of the Polygon 2.0 upgrade aims to ensure that users and developers on Polygon PoS and Polygon zkEVM chains won’t need to take any additional actions.

To achieve this, a couple of changes will be made to the Ethereum contracts, starting with the initiation of the upgrade from MATIC to POL, and the upgrade from MATIC to POL as the native (gas) token for Polygon PoS. Additionally, the proposed changes will also introduce the upgrade from MATIC to POL as the staking token for Polygon PoS, followed by the launch of the Staking Layer and migration of Polygon public chains to leverage it.

Nonetheless, the first set of improvement proposals to be deployed during the phase 0 operations includes the transition plan, new Polygon 2.0 token specs, and Polyon PoS native token updates. While this stage is aimed at establishing the upgrade of POL, it will see to the migration of the MATIC to POL token. 

MATIC to POL Token Migration

While the first set of proposals released is keen on facilitating the token migration of MATIC to POL, the initial proposal has addressed POL including contracts for token creation and migration.

The proposal reveals that POL is able to allow a direct migration from MATIC, starting with 10 billion tokens and an annual increase of 2%, divided between validator rewards and a community fund.

Following its design, POL will function as a next-generation token that enables staking, community ownership, and design by accommodating an ecosystem of ZK-based Layer 2 chains.

In addition to this, another proposal released suggests switching the main gas token on Polygon POS from MATIC to POL while maintaining backward compatibility. This will involve upgrading the native MATIC Bridge Contract so that the native token on Polygon PoS transitions from MATIC to POL. This change won’t affect the properties of the native token or the functionality of contracts on Polygon PoS. However, Ethereum contracts relying on MATIC from the native MATIC Bridge might be impacted by this upgrade.

MATIC’s Price as of Today 

Apparently, the era of MATIC tokens is set to pass for the Polygon community as operations to migrate to POL have already kicked off. While this big shift may appear promising following the massive upgrade set to happen on the network, it is still uncertain what the impact will be on the token’s price.

As of the time of writing, Polygon is trading at $ 0.519118 down -0.33% in the last day and less than -3.90% in the past week. This reflects a bearish trend in the price of Polygon.

While this downward trend has continued for the past months, there are hopes that the potential migration from MATIC to POL may trigger a positive twist in the value of Polygon.