- MATIC has seen repressed value motion within the present cycle and is ranging round June 2022 lows.
- MATIC holders will be capable to convert their balances to the multipurpose POL token in September.
Polygon [MATIC] has been within the means of transitioning from its present state to a extra superior decentralized system.
Polygon 2.0, unveiled in June 2023, entails a set of proposed upgrades redefining Polygon’s tokenomics, protocol structure, and governance points.
The upgrades additionally contain enhancements to the community’s consensus mechanism, guaranteeing it may well help the anticipated progress and scaling calls for.
Polygon’s ambitions to change into a multi-chain answer
Polygon 2.0 introduces a brand new structure specializing in limitless scalability and unifying liquidity throughout a number of chains throughout the Polygon community. Foundational steps began final 12 months by establishing the infrastructure enabling this imaginative and prescient of an elaborate ecosystem.
In September 2023, Polygon Labs launched its first set of Polygon Enchancment Proposals (PIPs), marking the start of the implementation of Polygon 2.0.
A month later, in October, Polygon’s improvement staff deployed the sensible contracts governing the brand new Polygon ecosystem token (POL) on the Ethereum mainnet.
Hyperproductive POL token
From a technical standpoint, the next-generation POL token can be primarily based on a brand new sensible contract normal to allow environment friendly and versatile operations throughout the Polygon ecosystem.
POL has an preliminary provide cap of 10 billion tokens, with an annual emission charge of 1% for the subsequent ten years.
POL can be a flexible utility token facilitating higher scalability and governance throughout a number of chains.
POL holders will moreover be capable to take part in securing Polygon chains via a extra superior decentralized staking mannequin which affords higher rewards to stakers.
MATIC to POL migration
The MATIC to POL improve, confirmed for September 4 consistent with preliminary projections, will usher in a brand new system the place POL replaces MATIC because the native fuel and staking token for the Polygon PoS community.
MATIC token, itself rebranded earlier than, has been the spine of the Polygon ecosystem.
The improve will permit customers to swap their tokens and is a major milestone within the Polygon 2.0 roadmap as a result of it represents the precise shift within the community’s tokenomics and governance.
As a part of the phasing-out course of over the subsequent 4 years, MATIC holders might want to run a swap transaction (1:1 swap ratio) to switch their balances to the improve sensible contract, after which MATIC will stop to exist.
MATIC value motion
Polygon’s MATIC has been one of many hardest-hit alts within the present market cycle. MATIC held onto the $0.61 help between April and June earlier than breaking out of this multi-month consolidation.
Supply: TradingView
Up to now in August, the token has erased 10% of its worth and may very well be set for extra losses amid prevailing volatility. IntoTheBlock information exhibits solely 2% of all MATIC holders are in revenue, with one other 1% breaking even at present costs.
Although MATIC/USDT has bounced off the $0.334 help established on fifth August, its value motion stays regarding. On the 4-hour chart, the pair has been transferring sideways between $0.38 and $0.42 for 3 weeks now.
Supply: TradingView
Nonetheless, the near-term outlook is just not all bleak. Bullish speculators goal the $0.50 psychological degree for extra upside because it beforehand supplied help between July 2023 and August 2024.