Polygon Founder Announces POL: Massive Technical Upgrade to MATIC
Jessie A Ellis Aug 29, 2023 12:01
Sandeep Nailwal introduces the POL token, a technical upgrade to Polygon's ecosystem, revolutionizing multi-chain staking and introducing a new era in token design.
Sandeep Nailwal, the founder of Polygon, announced a significant technical upgrade to the Polygon ecosystem with the introduction of the POL token. The announcement, made via Twitter, outlines how POL aims to revolutionize multi-chain staking and bring about a new era in token design.
POL: A Technical Marvel
According to Nailwal, "POL is a massive technical upgrade to MATIC. POL delivers the benefits of multi-chain staking without the added risks of restaking." The token is part of the Polygon 2.0 proposal, which seeks to expand the Polygon ecosystem from a single chain to an interconnected network of Layer 2 solutions (L2s).
The Vision Behind POL
According to a recent blog post on Polygon's official website, the POL token is engineered to serve as the "major tool for coordination and growth of the Polygon ecosystem, as well as the main driver behind the vision of the Value Layer for the Internet." The token is designed to provide "practically unlimited opportunities" to its holders by enabling validators to oversee multiple chains and assume various roles, thus significantly accelerating the growth of the Polygon ecosystem. However, the introduction of POL rewards will replace the existing MATIC protocol rewards for Polygon validators, raising questions about the future role of MATIC and its potential impact on the asset's market value.
Multi-Chain Staking and Enshrined Restaking
One of the most notable features of POL is its approach to "enshrined restaking," which allows the token to be restaked across any number of chains on the network. Nailwal states, "POL can natively be used to stake any number of chains and participate in any number of roles. This lets stakers earn higher rewards with the same staked capital."
Reducing Centralization
The POL token is designed to minimize reliance on trusted third parties, thereby reducing vectors of centralization. "Enshrined restaking fully avoids reliance on trusted 3rd parties, creating fewer vectors of centralization," Nailwal explained.
A New Generation in Token Design
POL represents a third generation in token design, following Bitcoin (BTC) and Ethereum (ETH). While BTC does not allow holders to participate in securing the network, and ETH allows staking for network security, POL takes it a step further. According to Nailwal, "POL is designed from the ground up to be the first hyperproductive token -- a third generation in token design."
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