Sandeep Nailwal, one of the founders of Polygon, recently interacted with the media. The discussion was around the transformation of the native token, MATIC, to POL. First things first, POL is live at the time of drafting this article, and Sandeep has confirmed the same in the media interaction.
He has called POL a hyperproductive token. This is based on the token’s functionality to incentivize the validator and back the restaking mechanism. With POL being live, validators are already getting their rewards for their services.
While the transformation is an upgrade, he has emphasized that it is more of a technical upgrade in an attempt to get away from the immutable characteristic of MATIC. Validators are leveraging their POL holdings. Individuals can expect the same to happen once Polygon has published guidelines or a roadmap for them.
Nailwal has highlighted that changing the name could have been an option, but the team had to navigate a way around that idea since MATIC is an immutable token. It cannot be changed in any way. Hence, migration to a technical upgrade appeared to be a more productive solution.
POL is poised to be a better token. It has been architected in a manner in which it will be able to support multiple chains. The feature was missing in MATIC, restricting its utility. Thereby, a cap is put on its value on the board.
Touching upon the aspect of token economics, Sandeep has added that the principle is in place to inflate the economy by 1% every year. This will be utilized to incentivize validators to provide security and validate transactions. Plus, it would contribute to the amount of rewards holders can claim. The Ecosystem Treasury offers additional support for POL. It is tasked with growing the ecosystem following the allotment of 1%.
The objective is to keep Polygon competitive with the big names, including, but not limited to, Bitcoin and Ethereum.
Finally, Sandeep touched upon the staking mechanism that makes POL crypto the 3rd gen hyperproductive token. POL is highly inspired by Ethereum, where holders of the token can participate in Ethereum security. POL takes a step forward, giving holders the additional ability to participate in additional chains.
This means that POL holders can participate in the Polygon Chain and other chains that are supported by the Polygon ecosystem.
The community has responded with mixed reactions. Most of the members are looking forward to the migration; however, some have said that the MATIC token will now be poised to lose its value following the publication of the media interaction.
Instead, MATIC has gained 4.06% in the last 24 hours, touching the value of $0.8404. Although it reflects a slip of 14.36% in the last 7 days, many community members are confident that POL will efficiently redeem their holdings with better functions and return value.