polygon 2.0

Polygon 2.0 – 2024 to see unified ZK-powered L2 chains

December 7, 2023 Coin Telegraph

Polygon launches POL token contract on Ethereum to eventually replace MATIC

October 25, 2023 Coin Telegraph

The team migrated the POL token contract to the Ethereum network, paving the way for it to replace MATIC in the future.

Polygon Labs has launched the Ethereum contract for the new Polygon token, POL, according to an October 25 announcement. The new token is intended to replace the ecosystem’s current token, MATIC. However, the team said users presently don't need to exchange their MATIC for POL.

The POL token upgrade is now live on Ethereum mainnet.

Polygon 2.0, released this summer, is a roadmap for scaling Ethereum to build the Value Layer of the Internet. POL unlocks that future.

POL is a next-generation token that can power a vast ecosystem of ZK-based L2 chains.… pic.twitter.com/gmrsu0ZqLz
— Polygon (Labs) (@0xPolygonLabs) October 25, 2023

According to blockchain data, the new token was created on October 25 at 09:06 a.m. UTC. Its full name is the “Polygon Ecosystem Token.” In the announcement, the Polygon team claimed that POL would “power a vast ecosystem of zero knowledge-based Layer 2 chains” by implementing a 're-staking protocol' that allows token holders to stake it on multiple chains, performing multiple functions in the process.

The token’s launch will now pave the way for other aspects of the Polygon 2.0 roadmap to be implemented, including the launch of a new staking layer for the Polygon ecosystem, upgrading the current Proof of Stake (PoS) network to zkEVM layer-2, and creating a shared liquidity protocol for all Polygon networks, the post stated.

The team emphasized that POL is not currently being used for any systems in the Polygon network. Staking on both Polygon PoS and Polygon zkEVM is still being performed via the old token, MATIC, and gas fees on the PoS network are still being paid for with MATIC. So, users, validators, and app developers do not need to exchange their MATIC for POL at present.

Polygon Labs first announced it was developing a new layer-2 ecosystem on June 29. It called the new ecosystem “Polygon 2.0.” On September 14, the team announced that Polygon 2.0 would use a new token, POL. But at the time, the token was just a proposal and had not been deployed to Ethereum.

Polygon’s proposed layer-2 ecosystem will use zero-knowledge proofs to validate transactions between networks. It will face competition from the Optimism ecosystem proposed by Optimism Labs, which will use optimistic rollup technology to secure messages between networks.

Polygon (MATIC) rally comes to an end as competitors devour market share

October 10, 2023 Coin Telegraph

Arbitrum

MATIC price has retraced a majority of its recent gains. Cointelegraph explores why.

Polygon’s native token (MATIC) experienced a 16.4% rally that coincided with the launch of Polygon 2.0 Goreli testnet on Oct. 4. However, the resistance at $0.60 proved stronger than anticipated and was followed by a 10.6% decline over the six days leading into Oct. 10.

This decline was exacerbated by negative news regarding the departure of a key co-founder and weak activity in Polygon’s zero-knowledge rollup (ZK-rollup) subnet.

*Polygon (MATIC) 12-hour price in USD. Source: TradingView*

MATIC’s price has wiped out previous gains from the early October rally, erasing the bullish momentum driven by the expectations of the protocol’s upgrades.

Rallies tend to follow mainnet and protocol updates

Polygon 2.0 is a network of ZK-based layer-2 chains unified via a novel cross-chain coordination protocol. Polygon’s 2.0 scaling technology was unveiled in June 2023 as a plan for a scaling ecosystem consisting of four layers: staking, execution, interoperability and proving. Each of these layers contributes to creating an interconnected ecosystem of chains that facilitate secure, fast and highly cost-effective transfers.

Among the benefits of Polygon 2.0 are enhanced security and privacy through ZK-proofs, full compatibility with the Ethereum Virtual Machine (EVM) and instant cross-chain interactions without requiring additional security or trust assumptions. It’s worth noting that the project is continuing to develop its Zero-Knowledge Scalable Transparent Argument of Knowledge-based layer-2 solution, Miden.

One could argue that the recent 10.6% retracement merely reflects an adjustment to the overexcitement triggered by the testnet launch. However, other factors may have contributed to investors’ worsening sentiment toward Polygon. For instance, Polygon’s ZK subnet, zkEVM, has lagged behind competitors in activity and deposits.

Network data shows Polygon losing steam as new competition emerges

*ZK networks daily active and transactions. Source: artemis.xyz*

Metrics from Artemis, an on-chain data provider, reveal a significant disparity between Polygon zkEVM’s 6,210 active addresses compared to StarkNet’s 154,390 and zkSync ERA’s 239,810. A similar discrepancy exists when analyzing the number of daily transactions, with Polygon’s ZK-rollup also trailing competitors.

Taking a broader perspective on the total number of transactions and deposits in the Polygon network yields suboptimal results. For example, Polygon’s total value locked (TVL) stands at $756 million, according to DefiLlama, which is less than half of Arbitrum’s layer-2 scaling solution.

*Total value locked (TVL) in USD. Source: DefiLlama*

It’s noteworthy that despite being launched much earlier than most Ethereum layer-2 solutions in June 2020, Polygon is now facing direct competition from Optimism and Base.

The departure of Polygon’s co-founder, Jaynti Kanani, on Oct. 4 after six years with the project also triggered some degree of discomfort among investors, given the project’s proximity to the crucial completion of its improved multiple-layer scalability solution. Interestingly, this decision follows the departure of Polygon Lab’s CEO, Ryan Wyatt, in July 2023, not long after joining the company in February 2022.

Further impacting MATIC’s performance was a decline in the number of active addresses using the Polygon network’s decentralized applications (DApps).

*Polygon network DApps active addresses, 30-day change. Source: DappRadar*

On average, the top 12 DApps on the Polygon network experienced a 17% decline in the number of active addresses over the last 30 days. This issue was particularly concerning in the NFT and decentralized finance markets, notably affecting applications like Uniswap, OpenSea and Move Stake.

Regardless of the reasons behind MATIC’s token surge earlier in October, the recent 10.6% negative performance can be attributed to reduced network activity, the departure of a co-founder during a critical upgrade phase and stiff competition from other ZK scaling solutions.

Ultimately, there is enough bearish news flow to justify this correction, although the team has been consistently delivering the necessary updates and improvements to the Polygon network. Investors should closely monitor the project’s progress in addressing these challenges and capitalizing on the innovations of Polygon 2.0.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Polygon 2.0 — MATIC conversion to POL outlined in preliminary improvement proposals

September 14, 2023 Coin Telegraph

Coin Telegraph

The Ethereum layer-2 developer has introduced the first improvement proposals to begin the transition to its Polygon 2.0 ecosystem.

Polygon Labs’ vision of an interconnected layer-2 Ethereum ecosystem powered by zero-knowledge cryptography begins in earnest following three inaugural improvement proposals that will begin the transition to Polygon 2.0.

The scaling technology firm unveiled Polygon 2.0 in June 2023, outlining plans for a scaling ecosystem made up of four protocol layers. The staking, interop, execution and proving layers all play a role in creating an interconnected ecosystem of chains that enable fast value transfer and information sharing.

1/ The wait is over. Polygon 2.0 implementation kicks off now with the release of 3 Polygon Improvement Proposals (PIPs), and a roadmap for Phase 0.https://t.co/gk7FW0zCpc pic.twitter.com/YJo3BtQy4y
— Polygon (Labs) (@0xPolygonLabs) September 14, 2023

Polygon co-founder Sandeep Nailwal recently unpacked how the ecosystem aims to become the value layer of the internet by using zero-knowledge (ZK) technology to provide low-fee, high-throughput performance to the wider Ethereum ecosystem.

Polygon released three Polygon Improvement Proposals (PIPs) on Sept. 14 for community consideration and voting that are earmarked to begin taking place in the final quarter of 2023.

The PIPs outline technical details for “Phase 0” of the establishment of a network of interconnected ZK-powered layer-2 chains that scale Ethereum. This includes a proposal for the transition and specifications that will see MATIC (MATIC) tokens become POL tokens, which will become the Polygon proof-of-stake (PoS) protocol’s native token.

PIP-17 will include the initiation of the upgrade from MATIC to POL. This includes its transition to POL as the native gas token and staking token for the Polygon ecosystem, as well as the launch of the staking layer and migration of Polygon public chains.

PIP-18 includes the technical description of POL tokens as well as accompanying contracts that will handle emission and token migrations. POL tokens can be migrated at a 1:1 ratio from existing MATIC tokens. The PIP notes an initial supply of 10 billion and a yearly emission of 2% equally distributed between validator staking rewards and a community treasury.

Lastly, PIP-19 proposes the update of the native gas token on Polygon PoS from MATIC to POL while ensuring maximum backwards compatibility.

Polygon’s announcement notes that PIP-19 will not change contracts on Polygon PoS, while the properties of the protocol’s native token will not change either. However, contracts on Ethereum that are awaiting MATIC from the native MATIC bridge may be affected by the upgrade.

Magazine: Here’s how Ethereum’s ZK-rollups can become interoperable

Why is Polygon (MATIC) price up today?

July 14, 2023 Coin Telegraph

Arbitrum

MATIC price surged due to favorable regulation, increased network use and anticipated Polygon 2.0 upgrade that could see a rebrand to POL.

Polygon (MATIC) has experienced a significant price increase on July 13, driven by several key factors. These include a recent positive court ruling for XRP, increased activity of decentralized applications (Dapps) on the Polygon Network, and the highly anticipated launch of Polygon 2.0.

*MATIC/USD 12-hour price at Coinbase. Souce: TradingView*

Within just 12 hours, MATIC witnessed a remarkable 24% rally, propelling its price to $0.89 on July 13, reaching its highest level in five weeks. Although the initial excitement subsided, the token managed to sustain a daily gain of 15%, indicating growing demand from traders and investors.

MATIC seizes opportunity from the SEC's loss

On July 13, the United States District Court for the Southern District of New York ruled that XRP is not a security. This court decision could have far-reaching implications for other alternative cryptocurrencies, particularly after the U.S. Securities and Exchange Commission (SEC) specifically classified MATIC as a security during its legal battle against Coinbase on June 6.

As investors evaluated the risks associated with holding and trading assets that could potentially face delisting from regulated centralized exchanges, the price of MATIC plummeted by 37% over the next five days, hitting its lowest point in 11 months on June 10.

The court ruling determined that XRP holders do not have a reasonable expectation of earning profits from the efforts of others. This outcome represents a positive development for the entire cryptocurrency industry.

Apart from the immediate impact on MATIC due to its initial coin offering (ICO) in 2019, the court decision also affects Ethereum, upon which the Polygon network relies for its infrastructure. Ethereum faced a similar risk of being deemed a security, particularly during its ICO phase. On April 18, SEC Chair Gary Gensler declined to clarify whether ETH was a commodity or a security during a Congressional Committee hearing.

Polygon gains traction as Ethereum scalability solution

Additionally, the activity of Dapps on the Polygon Network has witnessed substantial growth in recent weeks. This development bodes well for MATIC, indicating that the network is possibly gaining traction as the go-to scalability solution for the Ethereum network.

According to data from DappRadar, the number of active Dapps on Polygon has surged by 47% in the past 30 days.

*30-day Polygon Network’s applications activity. Source: DappRadar*

The increase in Dapps activity spans various sectors, including interoperability, NFT platforms, Web3, DEX exchanges, and games.

Anticipating a MATIC price surge with Polygon 2.0 upgrade

The Polygon development team has proposed a token upgrade on July 13, allowing holders to validate multiple chains. The proposal awaits community approval and, if successful, will result in a rebranding from MATIC to POL.

According to the announcement, the Polygon 2.0 upgrade will facilitate the support of multiple chains without compromising security. It will also introduce incentive streams for validators, including zero-knowledge proof generation. Once launched, this upgrade has the potential to further drive up the price of MATIC.

MATIC price poised for more gains, but caution needed

With a total value locked (TVL) of $1 billion on the Polygon Network, this second-layer scaling solution has found its niche among users of decentralized applications. Importantly, this number has grown from $878 million in the previous month, indicating increasing demand for its processing capabilities.

While it may be premature to predict the timing and potential impact of the proposed Polygon 2.0 upgrade, other competing solutions like Arbirtrum (ARB) and Optimism (OP) are also experiencing growth. Privacy implementations utilizing zero-knowledge proofs may also capture significant market share due to their unique features currently unmatched by the Polygon Network.

In essence, there are no apparent obstacles preventing MATIC from reclaiming the $0.90 support level observed prior to the SEC's action against Coinbase on June 6. However, investors will likely await further development confirmation before expecting a more consistent bullish momentum for MATIC.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Polygon proposes architecture for ‘Polygon 2.0,’ including aggregator bridge

June 30, 2023 Coin Telegraph

Coin Telegraph

The forthcoming multi-chain system will use ZK proofs to transfer assets between networks.

Polygon Labs, creator of the Polygon (MATIC) network, has proposed an architecture for its forthcoming “Polygon 2.0” project. The team suggested in a June 29 blog post that the new project should be made up of four different ‘layers,’ which will combine to create a web of networks ultimately connected to each other through Ethereum. If approved by validators, Polygon 2.0 will also feature an aggregator that makes bridge transactions “near-instant and atomic” the team said.

1/ Today, we are excited to propose the Polygon 2.0 architecture, designed to provide unlimited scalability and unified liquidity, thus transforming Polygon into the Value Layer of the Internet!

Read the blog or keep scrolling https://t.co/sShy6R1E6R pic.twitter.com/BTdwkri4nI
— Polygon (Labs) (@0xPolygonLabs) June 29, 2023

The team first announced Polygon 2.0 on June 12, claiming that the new project would establish “the value layer” of the Internet. But details were scarce at that time. On June 20, co-founder Mihailo Bjelic proposed upgrading the current Polygon network to use zero-knowledge proofs, which he said was necessary in order to make the old network compatible with the “vision” of 2.0.

The June 30 post goes into greater detail about what Polygon 2.0 will look like. The foundation of the project will be the “staking layer” that currently exists. This consists of a “validator manager” contract on Ethereum plus an additional “chain manager” contract for each individual Polygon chain. In the future, new Polygon chains will be able to form by launching new chain manager contracts on Ethereum.

Connecting to this foundational staking layer will be an “interoperability layer” that contains bridges connecting each Polygon chain to each other, through Ethereum. This layer will be secured by using zero-knowledge proofs to validate all transfers.

The interoperability later will also feature an aggregator that combines individual ZK-proofs from each bridge into one proof before sending it to Ethereum. This will enable “seamless” bridge transactions and “dramatically [reduce] Ethereum gas consumption for proof verification,” the team stated.

The third layer of Polygon 2.0 will be the current execution layer which relies upon the Erigon Ethereum client, and the fourth layer will be a “proving layer” that standardizes the ZK-proof process across all Polygon chains.

The team announced that further details about each layer will be provided at a future date.

Polygon isn’t the only network trying to expand into a multi-chain ecosystem. zkSync Era has announced that it intends to create a network of “Hyperchains,” which it hopes to launch in a testnet phase by the end of the year. Optimism is also trying to create a “Superchain” in cooperation with Coinbase’s Base network, and it recently implemented its “Bedrock” upgrade to pave the way towards this transformation.