Following three initial upgrade recommendations named Polygon Improvement Proposal (PIP), which will start the transition to Polygon 2.0, Polygon Labs’ vision of an interconnected layer-2 Ethereum ecosystem driven by zero-knowledge cryptography officially begins.
In June 2023, the scaling technology company announced Polygon 2.0, proposing ideas for a scaling ecosystem composed of four protocol layers. Staking, interop, execution, and proving layers all contribute to the development of a network of interconnected chains that allow for quick information sharing and value transfer.
Sandeep Nailwal, a co-founder of Polygon, has explained how the ecosystem intends to transform into the value layer of the internet by employing zero-knowledge (ZK) technology to offer low-fee, high-throughput performance to the larger Ethereum environment.
Polygon Improvement Proposal (PIP)
On September 14, Polygon issued three Polygon Improvement Proposals (PIPs) for community discussion and voting, with implementation set to start in the fourth quarter of 2023.
The PIPs include technical information for “Phase 0” of the creation of a network of linked layer-2 chains powered by ZK that scale Ethereum. This contains a plan for the changeover and technical details that will turn MATIC tokens into POL tokens, which will then become the native token for the Polygon proof-of-stake (PoS) protocol.
Polygon Improvement Proposal (PIP-17) will mark the beginning of the MATIC to POL upgrade. This comprises the debut of the staking layer, migration of Polygon public chains, and its transfer to POL as the native gas token and staking token for the Polygon ecosystem.
PIP-18 contains the POL tokens’ technical specifications as well as supplementary contracts for handling token migrations and emission. Existing MATIC tokens may be transferred into POL tokens at a 1:1 ratio. The PIP mentions a 10 billion initial supply and a 2% annual emission split evenly between validator staking rewards and a community treasury.
Finally, PIP-19 suggests changing Polygon PoS’s native gas token from MATIC to POL while maintaining the highest level of backwards compatibility.
According to Polygon’s statement, PIP-19 won’t alter Polygon PoS contracts or the characteristics of the protocol’s native token. However, the change can have an impact on Ethereum contracts that are waiting for MATIC from the native MATIC bridge.
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