In order to redefine the dynamics of the Ethereum layer, Polygon Labs has set in motion the highly anticipated transition to the Polygon 2.0 ecosystem. This important transition, governed by three crucial improvement proposals, heralds a new era in the world of blockchain technology, showcasing an interconnected Layer 2 Ethereum ecosystem powered by cutting-edge zero-knowledge cryptography.
From MATIC to POL: A Fundamental Change
Marking a significant shift in the digital currency landscape, Polygon is preparing to carry out the transition from MATIC tokens to POL tokens, which will become the cornerstone of the Polygon proof-of-stake (PoS) protocol. Designed as “Phase 0” in the establishment of an interconnected Layer 2 network on Ethereum, the conversion outlines technical plans for a seamless migration at a 1:1 ratio, initially offering a supply of 10 billion POL tokens with an annual emission rate of 2%.
A Deep Dive Into Technical Aspects
As Polygon stands on the precipice of transformation, a closer examination of the technical aspects reveals a well-thought-out strategy. PIP-17 lays the foundation for the transition from MATIC to POL, detailing the role of the POL token as an essential gas and staking token in the evolving ecosystem. It also drives the launch of the staking layer, guiding the migration of Polygon’s public chains.
Simultaneously, PIP-18 sheds light on the meticulous design of POL tokens and the associated contracts that will manage token issuance and migrations, maintaining a balanced distribution between validator staking rewards and community treasury. Additionally, PIP-19 ensures a smooth transition from the native gas token on Polygon PoS from MATIC to POL, prioritizing upward compatibility without altering existing contracts on Polygon PoS.