Over the last day, the price of the Polygon native token, MATIC, has been on the rise, pushed upward by a single upgrade proposal. With the proposal gaining traction, will the price continue to rise, and is it too late to buy MATIC?
New Proposal To Change MATIC To POL
In an interesting turn of events, Polygon founders have suggested an overhaul of the Layer-2 blockchain’s native 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 transcends just its native chain to other chains.
A new token name (POL) was proposed in lieu of MATIC, which much better reflects the Polygon name. The upgrade is centered on this POL token which would allow for better scalability as well as help to bring more rewards for Polygon’s validators. The token would be operable across all Polygon networks, such as Polygon’s main blockchain and Polygon’s zkEVM, in addition to other supernets that run on Polygon.
Polygon says it plans to create three new layers of rewards for its validators, including transaction fees, protocol rewards, as well as other rewards to be made available to validate across multiple chains. Basically, the POL token will be to incentivize the validators who help to secure the network.
MATIC price up 5% in one day | Source: MATICUSD on Tradingview.com
The proposal by the founders is yet to pass as the Polygon community will still need to vote on it. However, if it does pass, the founders have proposed that all MATIC holders will be provided up to four years to exchange their tokens for POL.
Polygon Token Price Soars
Following the announcement of this proposal, the price of Polygon’s MATIC token has responded positively. The token which had been trading sideways for most of this week quickly saw a reversal and recorded over 5% in daily gains.
MATIC’s gains so far have seen it emerge as the second-highest gainer on Coinmarketmap, following behind SingularityNET’s AGIX. The price has now moved from trending below $0.73 to sitting firmly above $0.76 at the time of this writing.
MATIC is second-highest gainer on Coinmarketcap | Source: Coinmarketcap
However, despite the price increase, the price of MATIC still sits considerably lower than it did five months ago. Given that its price is sitting almost 50% lower than its February high of $1.5, this could present an opportunity to take advantage of MATIC’s low price.
If the proposal passes, then it could be bullish for the digital asset, as already demonstrated over the past day. And if the crypto market continues to recover, then MATIC could be looking toward breaking the $1 resistance in the near term.