Polygon 2.0: Transition from MATIC to POL Outlined in Preliminary Improvement Proposals
Polygon Labs is making strides toward its vision of an interconnected layer-2 Ethereum ecosystem powered by zero-knowledge cryptography with the introduction of three preliminary improvement proposals (PIPs) that mark the beginning of the transition to Polygon 2.0.
In June 2023, Polygon unveiled its ambitious Polygon 2.0 plans, which laid out the blueprint for a scaling ecosystem composed of four protocol layers: staking, interop, execution, and proving layers. These layers are designed to create a network of interconnected chains that facilitate rapid value transfer and information sharing while ensuring low fees and high throughput.
Polygon co-founder Sandeep Nailwal recently elaborated on how the ecosystem aims to become the value layer of the internet, leveraging zero-knowledge (ZK) technology to deliver exceptional performance to the broader Ethereum ecosystem.
On September 14, Polygon released three Polygon Improvement Proposals (PIPs) for consideration and community voting, with implementation scheduled to commence in the final quarter of 2023. These proposals constitute "Phase 0" of the establishment of an interconnected network of ZK-powered layer-2 chains that will significantly scale Ethereum.
The Key Proposals Include:
1. PIP-17: This proposal outlines the initiation of the transition from MATIC tokens to POL tokens. POL tokens will serve as the native gas token and staking token for the Polygon ecosystem. The proposal also covers the launch of the staking layer and the migration of Polygon public chains.
2. PIP-18: This proposal provides a technical description of POL tokens and their accompanying contracts responsible for emission and token migrations. Existing MATIC tokens can be seamlessly migrated to POL tokens at a 1:1 ratio. PIP-18 specifies an initial supply of 10 billion POL tokens and an annual emission rate of 2%, which will be equally distributed between validator staking rewards and a community treasury.
3. PIP-19: This proposal focuses on updating the native gas token on Polygon Proof of Stake (PoS) from MATIC to POL while ensuring maximum backward compatibility. It's worth noting that this update will not alter contracts on Polygon PoS, and the core properties of the native token will remain unchanged. However, contracts on Ethereum awaiting MATIC from the native MATIC bridge may be impacted by this upgrade.
These PIPs are crucial steps in the evolution of Polygon's scaling ecosystem, positioning it to become a pivotal player in the broader Ethereum landscape. The transition from MATIC to POL tokens and the implementation of ZK-powered layer-2 chains are pivotal developments that underscore Polygon's commitment to enhancing the scalability and efficiency of the Ethereum network.