Ethereum layer-2 solution provider Polygon has unveiled its vision for version two, a ‘Value Layer’ of the internet. The ongoing protocol changes come at a tough time for Polygon, which has just seen its native token flagged as a security by the U.S. SEC.
On June 12, Polygon Labs introduced Polygon 2.0, the “Value Layer of the Internet.” The internet facilitates the creation of information, but the Value Layer allows anyone to create, exchange, and program value, it stated.
Polygon Layer-2 Building On
Polygon Labs explained that the Value Layer “democratizes access to the global economy.”
“It is the missing piece of an Internet that serves users, not gate-keepers, rent-seekers or middle-men.”
Version 2.0 is a proposed set of upgrades that “radically reimagines” almost every aspect of the network, it added. The changes will be from protocol architecture to tokenomics to governance.
However, it should be noted that Polygon’s current tokenomics is heavily venture capital controlled, so not quite as “decentralized” as the project claims.
More than a year of collaboration between Polygon Labs, developers, researchers, applications, node operators, validators, and the Ethereum community has culminated in this ecosystem upgrade.
The new iteration of Polygon is a network of zero-knowledge-powered layer-2 chains. These will be unified via what it described as a “novel cross-chain coordination protocol.”
“The network can support a practically unlimited number of chains and cross-chain interactions can happen safely and instantly, without additional security or trust assumptions.”
Polygon laid out a roadmap with updates to proof-of-stake, architecture, token, and governance slated for the next two months.
The move comes amid regulatory scrutiny in the United States. The SEC has labeled its native MATIC token as a security in its crypto exchange crackdown. Polygon Labs refuted the claims stating that the network and token were developed and deployed outside the U.S.
MATIC Price Plummets
The MATIC price has crashed a painful 23% over the past week since the SEC’s twin lawsuits. Furthermore, it is down nearly 30% over the past fortnight.
MATIC was trading up 2% on the day at $0.643 at the time of writing.
The layer-2 governance token surged to $1.53 in February but has since lost all its gains in a fall to its lowest level this year. MATIC is currently down 78% from its December 2021 all-time high of $2.92.
The SEC’s allegation that MATIC is a security has forced several large trading platforms, such as Robinhood and eToro, to delist the token.
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