[NEWS] Polygon Labs proposes upgrading from MATIC to "POL," which it positions as the third generation cryptocurrency

On the 13th, Polygon Labs announced a proposal to upgrade Polygon's native token MATIC to a new crypto asset called POL.

If the proposal published with the announcement is accepted by the community, all MATIC will be migrated to POL at a 1:1 ratio.

According to Polygon, POL will be positioned as the third generation crypto asset after Bitcoin (BTC) and Ethereum (ETH).

Specifically, he explains that although Bitcoin is positioned as the first native token to achieve large-scale success, it is only useful for the Bitcoin protocol and is an unproductive asset. This is due to the fact that Bitcoin holders are not given a role in the protocol or incentives.

He also states that Ethereum is an improvement over Bitcoin, is positioned as the second generation of native protocol assets, and has been established as a productive token. Ethereum holders can become validators and earn rewards for performing useful work, making it a productive token.

He said that Polygon's POL will take a step further from here and become a third-generation native token with even greater productivity.

According to the proposal, by holding POL, it is possible to become a validator for multiple chains. Each chain can also assign multiple roles to validators.

Polygon Labs calls these functions "innovative designs" and lists the benefits of protecting and adjusting the Polygon ecosystem and promoting further growth, while at the same time providing unlimited scalability to POL holders.

Regarding the transition from MATIC with the upgrade, a simple mechanism will be put in place that allows the same amount of POL to be received by using smart contracts.

While the upgrade itself will take sufficient time, if there is consensus from the community, the transition will begin within a few months.

Reference: Announcement
Image: Quoted from Polygon Labs announcement