Sandeep Nailwal explains the transformation of MATIC to POL

Sandeep Nailwal, one of many founders of Polygon, lately interacted with the media. The dialogue was across the transformation of the native token, MATIC, to POL. First issues first, POL is reside on the time of drafting this text, and Sandeep has confirmed the identical within the media interplay.

He has referred to as POL a hyperproductive token. That is based mostly on the token’s performance to incentivize the validator and again the restaking mechanism. With POL being reside, validators are already getting their rewards for his or her providers.

Whereas the transformation is an improve, he has emphasised that it’s extra of a technical improve in an try and get away from the immutable attribute of MATIC. Validators are leveraging their POL holdings. People can count on the identical to occur as soon as Polygon has printed pointers or a roadmap for them.

Nailwal has highlighted that altering the identify might have been an possibility, however the workforce needed to navigate a method round that concept since MATIC is an immutable token. It can’t be modified in any method. Therefore, migration to a technical improve seemed to be a extra productive answer.

POL is poised to be a greater token. It has been architected in a fashion wherein it is going to be capable of help a number of chains. The characteristic was lacking in MATIC, proscribing its utility. Thereby, a cap is placed on its worth on the board.

Touching upon the side of token economics, Sandeep has added that the precept is in place to inflate the financial system by 1% yearly. This will likely be utilized to incentivize validators to offer safety and validate transactions. Plus, it will contribute to the quantity of rewards holders can declare. The Ecosystem Treasury affords extra help for POL. It’s tasked with rising the ecosystem following the allotment of 1%.

The target is to maintain Polygon aggressive with the large names, together with, however not restricted to, Bitcoin and Ethereum.

Lastly, Sandeep touched upon the staking mechanism that makes POL crypto the third gen hyperproductive token. POL is extremely impressed by Ethereum, the place holders of the token can take part in Ethereum safety. POL takes a step ahead, giving holders the extra capacity to take part in extra chains.

Which means POL holders can take part within the Polygon Chain and different chains which might be supported by the Polygon ecosystem.

The neighborhood has responded with combined reactions. Many of the members are wanting ahead to the migration; nonetheless, some have mentioned that the MATIC token will now be poised to lose its worth following the publication of the media interplay.

As a substitute, MATIC has gained 4.06% within the final 24 hours, touching the worth of $0.8404. Though it displays a slip of 14.36% within the final 7 days, many neighborhood members are assured that POL will effectively redeem their holdings with higher capabilities and return worth.