Polygon 2.0: Phase 0 Begins

Polygon Labs has unveiled the evolution of their platform, aptly named Polygon 2.0. This significant upgrade encompasses a modification to Polygon's architecture, tokenomics, and governance, ultimately aiming to transform it into the "Value Layer of the Internet". The upgraded system seeks to democratize access to the global economy, resembling how the internet changed access to information. It will enable decentralized finance, digital ownership, and more without depending on intermediaries. Additionally, Polygon 2.0 intends to solve the scalability issue of individual blockchains by creating a network of ZK-powered Layer 2 chains. These chains will offer virtually endless scalability and unified liquidity through a cross-chain coordination protocol. The innovative overhaul is designed to extend Ethereum's capabilities to align with the internet in terms of scalability, accessibility, and user experience. Polygon 2.0, kicking off with "Phase 0", illustrates Polygon's vision of becoming a fundamental protocol for creating, exchanging, and programming value on the Internet. The major changes planned include the transition from MATIC to POL tokens, introducing a new Staking Layer, ensuring a seamless shift for existing users, and more.

Polygon 2.0

Polygon Labs has announced the beginnings of Polygon 2.0. For a quick refresher, Polygon 2.0 seeks to transform Polygon into the "Value Layer of the Internet." This upgrade entails significant changes across Polygon's architecture, tokenomics, and governance.

Key points:

1. Vision for the Value Layer: Polygon envisions itself as the fundamental protocol enabling the creation, exchange, and programming of value, mirroring how the Internet facilitates the exchange of information.
2. Democratizing Access: Similar to how the Internet opened up access to information, the Value Layer aims to democratize access to the global economy, enabling decentralized finance, digital ownership, and more, while reducing reliance on intermediaries.
3. Proposed Upgrades: Polygon 2.0 comprises a series of proposed upgrades that reimagine various aspects of Polygon, including protocol architecture, tokenomics, and governance.
4. Scalability and Unity: Polygon 2.0 aims to address the scalability issue seen in individual blockchains by creating a network of ZK-powered Layer 2 chains. These chains will be unified through a cross-chain coordination protocol, offering practically limitless scalability and unified liquidity.
5. Expansion of Ethereum's Vision: Polygon 2.0 aspires to expand Ethereum's capabilities to align with its original intent, making it more like the rest of the Internet in terms of scalability, accessibility, and user experience.

In essence, Polygon 2.0 represents a strategic overhaul that positions Polygon as a fundamental layer for creating, exchanging, and programming value on the Internet, mirroring the democratizing impact the Internet had on access to information.

For the full breakdown of Polygon 2.0, you can read our previous articles where we cover every detail:

• Polygon 2.0 Overview
• Polygon Architecture
• POL Token
• Polygon Governance

Phase 0

Now, the Polygon Labs team has announced the start of the Polygon 2.0 journey, which they are calling "Phase 0". Phase 0 is broken up into three main parts and proposals with PIP-18.

PIP-18 provids a high-level overview of Polygon 2.0 Phase 0. This proposal sets the stage for subsequent PIPs, which will showcase more specific aspects of the upgrade. Notably, Phase 0 aims to ensure a seamless transition for existing end users and developers on Polygon PoS and Polygon zkEVM chains. Some of the key changes expected in this phase include:

• The transition from MATIC to POL as the primary Polygon token.
• The transition for POL as the native gas token for Polygon PoS.
• The transition for POL as the staking token for Polygon PoS.
• The introduction of the Staking Layer.

It is crucial to note that not all of these upgrades will occur simultaneously, and a roadmap detailing these milestones is available for reference.

MATIC To POL

This proposal is all about a new token called POL, which is set to replace the existing MATIC token. POL will have an initial supply of 10 billion tokens and will see an annual increase in supply of 2%. This new supply will be shared equally between those who help secure the network (validators) and a community treasury.

What makes POL special is that it's designed to work with advanced Layer 2 chains using Zero Knowledge Proofs. It also allows people to stake their tokens, have a say in how things are run (community ownership), and participate in the decision-making proces).

In simpler terms, POL is like the upgraded version of MATIC, and it's not just a currency; it's a tool that can do a lot more within the Polygon ecosystem, especially in the world of Layer 2 chains.

POL For Gas & Staking

This proposal also suggests a change in the primary token used for transactions and staking on the Polygon PoS network. Currently, MATIC is used as the native token, but the proposal suggests switching to POL while ensuring everything still works smoothly.

To make this switch, Polygon plan's to update the MATIC Bridge Contract, which is responsible for transferring tokens between the Ethereum network and Polygon. So, instead of using MATIC for gas fees, users will use POL.

This change won't impact any existing contracts or how they function on the Polygon PoS network. All the contracts will continue working as they do now. However, if there are contracts on the Ethereum network that expect MATIC tokens from the MATIC Bridge, they might need some adjustments due to this upgrade.

In simple terms, they're switching the token used for transactions on Polygon PoS from MATIC to POL, but it won't disrupt anything already in place on the Polygon network. Only contracts on Ethereum relying on MATIC might need some tweaks.

The Staking Layer

Lastly, Polygon Labs is proposing the roll out the Staking Layer, a set of clever contracts designed to empower validators within the Polygon ecosystem. These validators will now have the ability to use their staked tokens to engage in various services across the Polygon 2.0 ecosystem. These services include functions like validation, sequencing, proving, and ensuring data availability for multiple chains.

There's also a migration plan in place. The existing staking and validation system on Polygon PoS is set to transition to this new Staking Layer. This means that validators will be able to harness the capabilities of this fresh service while continuing their important work within the Polygon network.

Furthermore, rewards earned by validators will also undergo a shift. Instead of sticking to the legacy Polygon PoS staking contract, these rewards will be redirected to the new PoS Staking Layer service. This move is aimed at streamlining and optimizing the rewards process for validators.

Conclusion

Polygon 2.0 Phase 0 is just the beginning for the exciting Polygon 2.0 roadmap. The release of three Polygon Improvement Proposals (PIPs) marks the beginning of a transformative journey set to unfold in the upcoming months. As Polygon 2.0 takes shape, Polygon invites the community to participate actively and be a part of this journey towards the future of blockchain scaling. If you'd like to join in on the discussion, you can do so here.