Polygon has proposed an upgrade of its MATIC token allowing it to be utilized across multiple chains.
The ever-evolving crypto ecosystem often goes through various upgrades to achieve the goal of scalability and mass adoption. The Ethereum Layer 2 solution, Polygon, announced rebranding its native token to POL to scale across its ecosystem.
Polygon Announced Upgrading
On Thursday, Polygon shared its proposal for POL that could serve as a single token for all the Polygon chains, i.e., Polygon proof-of-stake (PoS), zero-knowledge Ethereum Virtual Machine (zkEVM), and Supernets.
Due to the POL upgrade, validators could validate multiple chains, and every chain would offer multiple roles to validators.
If the community passes this proposal, the MATIC tokens will be upgraded to POL at 1:1.
$5 Price Target?
However, the POL white paper has received criticism from community members. A Twitter user, “John Doe” highlighted the yearly emission rate of 1% of the POL supply and wrote:
“The real reason for a token swap in always in the white paper, not in the tweet.”
Moreover, the white paper also estimates a $5 average POL price during the 10-year period. Crypto educator Hitesh Malviya criticized the price target. He wrote on Twitter:
“I am critical of the way Polygon has shared a price target for $POL based on future growth. This could create unnecessary FOMO in an already uninformed crypto audience.
Only a few people will take note of the tokenomics, while most will shill based on the $5 target given in the white paper. I do not know why they did this, it could have been avoided.”
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