Polygon Labs Particulars MATIC to POL Transition in New Proposals

• Polygon formally introduced the discharge of three PIPs as a part of Polygon 2.0 improve.
• POL replaces MATIC as the brand new native coin within the Polygon ecosystem.
• The token alternative could counsel potential implications for Polygon’s traders.

On Thursday, September 14, 2023, Polygon Labs formally introduced the discharge of three Polygon Enchancment Proposals (PIPs) as a part of the proposed Polygon 2.0 improve. Prominently featured amongst them is the alternative of MATIC with POL as the brand new native coin within the Polygon ecosystem.

Final Thursday’s occasion marked the start of the implementation of Polygon 2.0, with the native token alternative suggestive of potential implications for traders on the Polygon Community. Such traders could also be involved in regards to the newest growth, contemplating the current classification of MATIC as a safety token by the U.S. Securities and Change Fee (SEC).

Among the many three launched PIPs is the PIP-17, which particulars how Polygon Community would undertake POL. The newly created token would change MATIC because the native fuel token and the staking asset of the Polygon ecosystem. PIP-18 focuses on section 0 of the brand new improve and requires end-users and builders on Polygon to do nothing, as it might implement mechanically.

The third section, PIP-19, additionally issues the POL token. It urges compatibility in switching from MATIC to POL on the blockchain. The good contracts on the Polygon Community will allow the POL token to retain the properties of the present MATIC.

Polygon’s current announcement marks a brand new milestone within the 2.0 improve proposal that began in June when the blockchain community introduced it might be transitioning to a zero-knowledge (ZK) answer. The next month, Polygon publicized its intention to switch MATIC with POL, explaining that POL could be a “hyperproductive” token enabling holders to develop into validators.

The announcement in July got here shortly after the SEC’s allegation labeling MATIC as an unregistered safety. Polygon claimed that its choice to change from MATIC to POL had nothing to do with the allegation. The blockchain challenge additionally denied the SEC’s allegations, stating that MATIC was developed outdoors the U.S.