After months of development and weeks after testnet deployment, the POL update is now available on the ethereum mainnet. According to a technology/blog/polygon-2-0-milestone-pol-contracts-are-live-on-ethereum-mainnet?utm_source=twitter&utm_medium=social&utm_content=pol-mainnet-blog” target=”_blank” rel=”nofollow”>update On October 25, Polygon Labs, the team behind ethereum sidechain Polygon, said the move is a milestone for the project. The team states that the release of POL “paves the way for the next series of milestones in the Polygon 2.0 roadmap.”
Polygon 2.0 is taking shape: what awaits us?
The ethereum sidechain continues to be built. Despite challenges in the latest bearish streak, which saw MATIC, the platform’s native currency, fall below $1 before falling to spot levels, the team announced the start of Polygon 2.0, reviving developer activity .
The main goal of the update is to make the network more scalable, secure and easier to use. To achieve this, Polygon will leverage a new consensus mechanism, proof-of-stake liquidity (POSL), which the developer says is more efficient.
In particular, the team is developing key differences between this consensus system for Polygon 2.0. For example, validators must stake their native tokens and liquidity to participate in the network.
The liquidity provided by participating validators will be channeled to increase the liquidity of their decentralized exchanges (DEX). Subsequently, once Polygon 2.0 goes live, exchanges running on the sidechain will be more liquid, meaning users will be able to easily trade tokens in a highly scalable environment with low fees.
Will MATIC Bulls Overtake the Dollar?
Additionally, POL will be essential for Polygon 2.0. With the token now booted on the ethereum mainnet, Polygon Labs is kick-starting the process, launching POL, which the team says will “power a vast ecosystem of ZK-based Layer 2 chains.”
The team claims that POL is a “hyperproductive token” primarily designed to power a multi-chain ecosystem. Additionally, the token will be used to settle fees and holders will participate in governance. At the same time, those who decide to stake it will receive payment in token.
Still, it is unclear whether this upgrade will support MATIC prices in the long term. At present, the psychological level of $1 remains elusive.
Looking at the price charts, MATIC is already up 30% from the October 2023 lows and continues to recover losses. Furthermore, the bulls have reversed the decline from October 17 and continue to rise.
On the daily chart, bullish bars are located along the upper BB, an indicator of volatility. This suggests that underlying momentum is building, favoring bullish buyers.
Featured image from Canva, TradingView chart
