• Polygon Labs has proposed replacing its MATIC token with the upgraded POL token for ecosystem expansion.
• POL’s price is predicted to average $5 in a 10-year growth scenario, with an annual emission rate of 2% for validator incentives and community treasury.
• The upgrade will be supported by a 10 billion initial supply of tokens which are solely dedicated for the migration of MATIC to POL.
Polygon Labs Proposes Upgrading MATIC Token
Polygon Labs has revealed a technical proposal to upgrade its MATIC token to POL, according to a July 13 blog post. The new digital asset will be a hyperproductive third-generation native asset that is designed to secure, align and grow the Polygon ecosystem.
POL Token Specifications
The POL token will have an initial supply of 10 billion tokens that is entirely dedicated to the migration of MATIC for POL. The layer2 network projected POL’s price during a 10-year growth scenario to an average of $ 5, adding that the ecosystem should grow in value as more users join it over time. In addition, there will be an annual emission rate of 2% which would be used for validator incentives and community treasury.
Benefits Of Upgrade
The upgrade from MATIC to POL would bring many benefits such as improved scalability, enhanced security features, reduced transaction costs and faster transaction times. Furthermore, it will enable faster integration with other Layer 2 solutions such as Optimistic Rollups and ZK Rollups while also allowing developers easier access to building on Polygon’s platform at lower costs than Ethereum gas fees.
Other Developments On Polygon
Aside from this proposal, Polygon has seen various developments recently including partnerships with Coinbase Custody and Binance Smart Chain among others in order to further expand their presence within the blockchain space. Additionally, they launched their own official wallet called “PolyGecko” which offers users the ability to store multiple assets securely on one platform or alternatively transfer them between different blockchains quickly and easily without needing any additional setup or configurations required usually needed when moving crypto assets between different networks..
With all these developments and initiatives being taken by Polygon Labs, it is no surprise that they are fast becoming one of the most popular Layer 2 networks in terms of usage metrics alongside other major players like Matic Network (MATIC) and Loopring (LRC). It remains yet unclear if they can succeed in their mission but it is interesting nonetheless what kind projects they may come up with next in order stay ahead in this ever growing market space.