Over the past day, the price of the Polygon native token, MATIC, has surged, pushed upwards by a single upgrade proposal. Will the price continue to rise if the proposal gains popularity and is it too late to buy MATIC?
New proposal to change MATIC to POL
In an interesting turn of events, Polygon’s founders have proposed revising the original Layer-2 blockchain’s MATIC token in favor of a new token. The proposal involves upgrading the current token in an effort to change and improve its capabilities, which only transcends its original chain to other chains.
A new token name (POL) was proposed instead of MATIC, which reflects the Polygon name much better. The upgrade is targeting this POL token, which would enable better scalability and help get more rewards for Polygon’s validators. The token could be used in all Polygon networks, such as Polygon’s main blockchain and Polygon’s zkEVM, in addition to other supernets running on Polygon.
Polygon says it plans to create three new reward tiers for its validators, including transaction fees, protocol rewards, and other rewards that will be made available to validate across multiple chains. Basically, the POL token is meant to incentivize the validators that help secure the network.
MATIC price up 5% in one day | Source: MATICUSD on Tradingview.com
The founders’ proposal has yet to be adopted, as the Polygon community has yet to vote on it. However, if it succeeds, the founders have proposed that all MATIC holders get up to four years to redeem their tokens for POL.
Polygon Token Price Rising
Following the announcement of this proposal, the price of Polygon’s MATIC token has reacted positively. The token that has been trading sideways for most of this week soon saw a reversal, posting more than 5% in daily gains.
MATIC’s gains to date have allowed it to emerge as the second biggest winner on Coinmarketmap, after SingularityNET’s AGIX. The price has now moved from trending below $0.73 to solidly above $0.76 at the time of writing.
MATIC is second-highest gainer on Coinmarketcap | Source: Coinmarketcap
However, despite the price increase, the price of MATIC is still significantly lower than five months ago. With the price down nearly 50% from its February high of $1.5, this could be an opportunity to take advantage of MATIC’s low price.
If the proposal passes, it could be bullish for the digital asset, as evidenced over the past day. And if the crypto market continues to recover, MATIC could try to break the $1 resistance in the near term.