MATIC price climbs as Polygon outlines proposals for 2.0 upgrade
- 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
1/ The wait is over. Polygon 2.0 implementation kicks off now with the release of 3 Polygon Improvement Proposals (PIPs), and a roadmap for Phase 0.https://t.co/gk7FW0zCpc pic.twitter.com/YJo3BtQy4y
— Polygon (Labs) (@0xPolygonLabs) September 14, 2023
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.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
