MATIC price climbs as Polygon outlines proposals for 2.0 upgrade
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- Polygon network developers published three proposals to implement the transition to Polygon 2.0.
- The proposals include the creation of a POL token to replace MATIC as the native gas and staking token of the ecosystem.
- MATIC price has climbed nearly 6% from Monday’s intraday low of $0.4910.
Ethereum network’s largest scaling solution, the Polygon network, officially proposed on Thursday three key changes ahead of its Polygon 2.0 upgrade. The proposals, which still have to be approved by the community, include the creation of a new POL token, which will replace the current MATIC token.
Polygon’s upgrade announcements are likely to support MATIC price, which has seen a recovery this week.
Bye MATIC, Welcome POL
With the upgrade to version 2.0, Polygon developers aim to establish a network of interconnected Layer 2 chains. These blockchains will be powered by zero-knowledge (zk) proofs. Zk proof algorithms power information transfer between parties without revealing sensitive data. This eliminates several security weaknesses associated with password enabled authentication protocols.
In this quest, developers behind the Ethereum scaling project released on Thursday three Polygon Improvement Proposals (PIPs), according to an announcement on the network’s official X account
With the upgrade to the Polygon 2.0 architecture, the project also intends to replace the MATIC token by a new one: POL. POL will be used as the network’s native token to pay transaction fees and staking in the MATIC ecosystem.
The three proposals (PIP-17, PIP-18 and PIP-19) outline the different phases of Polygon 2.0, the implementation of POL token and the upgrade of the native gas token from MATIC to POL, respectively.
Developers are awaiting an approval of the proposals, before Polygon 2.0 upgrade. Implementation will begin in Q4 if the community endorses the changes, which are unlikely to affect end users, Polygon said. It is still unclear when the vote will occur.
MATIC price recovery likely fueled by Polygon plans
MATIC price has climbed nearly 6% from Monday’s intraday low of $0.4910 to $0.5212,. In the last 24 hours, the token yielded 1.48% gains for holders. Polygon network’s announcement could further support a price increase in MATIC.
