Polygon, a leading Ethereum layer 2 development firm, has proposed an upgrade to its Polygon Token (MATIC) that would transform it into a multipurpose token capable of validating multiple chains. The proposal, which is awaiting approval from the Polygon community , would rename MATIC to POL upon implementation.
According to the announcement shared with Cointelegraph, POL would serve as a utility token across all Polygon protocols, including Polygon PoS, zkEVM, and Supernets. The upgrade aims to enable the scaling of protocol participants to support numerous Polygon chains while maintaining security.
The utility of POL revolves around coordinating and incentivizing validators to perform valuable work. If the upgrade is approved, the redesigned protocol architecture will bring features like infinite scalability and seamless interoperability between different protocols. Validators staking POL would have access to three incentive streams: protocol rewards, transaction fees, and additional rewards. Validators would be able to validate multiple chains and perform various roles on a single chain, such as generating zero-knowledge proofs and participating in data availability committees.
Polygon co-founder Sandeep Nailwal has previously highlighted the potential of Web3 gaming as a catalyst for widespread cryptocurrency adoption. He expressed enthusiasm for upcoming games launching on Web3 and their ability to generate significant revenue, stating that last year alone, Web3 games made over $2 billion. Nailwal also emphasized the importance of progressive decentralization as both protocols and application implementations continue to evolve and gain prominence.
