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Ethereum Layer 2 development firm Polygon has proposed upgrading its in-house MATIC (MATIC) token to a multi-purpose token that can be used to validate multiple chains.
The technical upgrade proposal for MATIC is subject to approval from the Polygon community. Once approved, MATIC will be renamed POL as a result of its upgrade to a multi-purpose token.
According to the announcement shared with Cointelegraph, the utility of POL will extend to all Polygon protocols, including Polygon PoS, zkEVM, and SuperNet. Sharing details about the anticipated upgrade, the announcement read:
“Primarily, this protocol enables the pool of participants, ie actors, to support thousands of polygon chains without sacrificing security.”
The utility of POL revolves around validators, aiming to align and incentivize them to do useful work. If the upgrade proposal is passed, the redesigned protocol architecture would introduce features such as infinite scalability and no friction between any two protocols.
For validators, POL staking can open up three incentive streams – protocol rewards, transaction fees, and additional rewards. In addition to validating multiple chains, validators can also perform multiple roles on the same chain, including zero-knowledge proof generation and participation in DACs (Data Availability Committees).
Connected: Polygon proposes architecture for ‘Polygon 2.0’ including aggregator bridge
In May, Polygon co-founder Sandeep Nailwal said that web3 gaming would eventually become one of the biggest drivers of mass crypto adoption.
When asked during an AMA about “real life” use cases for blockchain beyond trade and payments, he favored the gaming ecosystem:
“There are some top games launching in Web3 over the next 6-18 months and it will be very interesting to see if some of them are able to crack the crypto code. Last year alone there was over $2 billion in funding for Web3 games.”
Finally, Nelwal highlights the need for “progressive decentralization of protocols and applications as they gain greater and greater importance.”
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