Polygon 2.0's Revamp
Ben Simpson
Navigating the world of crypto with confidence & expertise | Founder & CEO of Collective Shift | Helped 1000+ investors maximise their returns & create a winning portfolio strategy
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Polygon is entering its biggest-ever change as it works towards ‘Polygon 2.0’.
I cut through all the jargon to precisely explain what Polygon 2.0 is and how this impacts MATIC ???
Bear market changes
Many projects are altering their tokenomics, from ATOM 2.0, Polkadot 2.0 and Chainlink 2.0. Another that caught our eye is Polygon and its upcoming Polygon 2.0 revamp.
In July, Polygon Labs shared a new direction to unite its fast-growing ecosystem in its biggest change since rebranding from Matic Network in 2021.
Polygon 2.0 described in one word: 'unity'
The Polygon project has grown into an industry giant that's building lots of products:
All these products create lots of confusion.
Polygon 2.0 will unify these various products with a renewed roadmap, continued transition to Ethereum, and change MATIC tokenomics.
Polygon has 4 fundamental focuses
#1 Unite value across Polygon It means Polygon 2.0 will allow value to flow easily around the ecosystem.
It will do this by providing a new architecture to underpin all value or liquidity that is then connected back and settled to Ethereum.
#2 Polygon PoS increasingly secured by Ethereum Its widely popular PoS ‘sidechain’ maintained by a permissioned set of 100 validators will move towards becoming more Ethereum-aligned.
#3 A renewed governance approach
A?new governance framework attempts to dispel centralisation concerns via:
#4 MATIC to become POL as part of tokenomic overhaul
This change is not only in name, but POL will become a 'productivity token' that powers many Polygon chains and lets holders play multiple ecosystem roles.
?What do you need to do if you’re a MATIC holder?
Nothing yet. Polygon will hold a future conversion event, where MATIC is converted (and burned) at a 1:1 conversion for POL.
Is Polygon 2.0 a positive or negative?
It appears a positive catalyst for Polygon. It helps unite value transfer across the ecosystem, lessen confusion with clearer branding, and build trust by remaining Ethereum-aligned. It also greatly enhances the MATIC token’s utility.?
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However, executing the Polygon 2.0 roadmap will be very resource-intensive. It's also unknown how the market will respond to the plan replace the fixed supply of 10B MATIC tokens (where 90% are already in circulation) with an inflationary model (unlimited supply with 1% yearly).
For now, the future for Polygon appears bright as it aims to be a core pillar in successfully scaling Ethereum.
For a deeper dive into Polygon 2.0, see our full article 'Making Sense Of Polygon 2.0 & The New Matic Token'.
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