Polygon (CRYPTO: MATIC) proposed three changes for implementing the transition to Polygon 2.0.

The changes involve the creation of a new POL token that will replace the current MATIC as the gas and staking tone of the ecosystem.

Polygon is a blockchain platform for creating a multi-chain blockchain system compatible with Ethereum.

Also Read: FTX's Ticking Time Bomb – Dogecoin, Tron, And Polygon May Face Brutal Shockwave

The conversion ratio is set at 1:1 with the new coin maintaining the same tokenomics of an initial supply of 10 billion and an annual issuance of 2% as staking rewards and community treasury.

The platform announced in June the development of Polygon 2.0, an inter-connected second-layer network serving as an infrastructure to create a value layer for the Internet within the Ethereum (CRYPTO: ETH) block space. It will be powered by zero — knowledge (zk) proofs.

Find out more about upgrading platforms, blockchains, and tokens! Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event — Future of Digital Assets. Tickets are flying — get yours!

Three Polygon Improvement Proposals (PIPs) are outlined for the different phases of Polygon 2.0 architecture. Approvals are yet to be received from the community. Implementation is set to commence in the fourth quarter of 2023.

The guidelines for the transition to V2 are proposed by three project developers within the governance section. The three sets of PIPs highlight the first Phase 0 which will focus on ensuring that the entire developer team and users will require no action during the upcoming updates.

The next phase is for the migration of the crypto MATIC to POL. The last phase proposes upgrading from MATIC to POL on Polygon proof-of-stake for ease of compatibility with earlier versions.

Read Now: Polygon Decreases More Than 3% Within 24 hours

Meet and engage with transformative Fintech business leaders and investors at Benzinga's exclusive event — Fintech Deal Day. Tickets are going fast — get yours!

Image: Shutterstock