Polygon, the Layer-2 scaling solution for Ethereum, is going through a major transformation, and the entire crypto market is watching closely. The last time the project rebranded, it kick-started a bull market, and now that the native token is undergoing a rebrand from $MATIC to $POL, all eyes are on the potential outcomes.
According to the $POL whitepaper proposal, the initial supply of the new token will be 10 billion POL, mirroring the supply of the current $MATIC token. It will have a yearly emission rate of 2% intended for validator incentives and community treasury. The proposal also suggests there might be an average price for POL based on various growth scenarios. The switch, however, is not just a rebranding but a token upgrade in essence.
A Hyperproductive Token
In a series of recent updates, Polygon Labs explained that $POL is a proposed technical upgrade for $MATIC, and the switch will only occur if the community reaches consensus. The upgraded token is promised to deliver some remarkable functionalities, making it a “hyperproductive” token, surpassing the capabilities of Bitcoin’s BTC and Ethereum’s ETH.
Bitcoin’s BTC, being a successful yet unproductive token, allows no participation in the protocol or reward system for its holders. Ethereum’s ETH, on the other hand, offers productivity as holders can become validators of the Ethereum blockchain and receive ETH rewards and fees.
The POL token aims to redefine this productivity by introducing the capability for holders to become validators and receive rewards across multiple chains, a significant leap in token functionality. Also, the chains will offer multiple roles and corresponding rewards to validators, which adds to the versatility and attractiveness of the upgraded token.
No Room for Two
The transition from MATIC to POL is a 1:1 token swap. Meaning, the original $MATIC holders will have their tokens upgraded to $POL without any dilution. The clear stance of the Polygon team is that there will never be two native tokens for the network.
As the community eagerly waits for more details and the potential initiation of this transformation, it’s crucial to understand that although the previous rebrand was a bull market catalyst, history doesn’t always repeat itself in the volatile world of cryptocurrencies. However, the $POL proposal and the potential it holds certainly make this a story to follow closely.
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