Polygon 2.0–20X Blue Chip Altcoin

THE Solution to Ethereum scalability and a revolutionary tech stack that will soon make POL the 3rd largest Token in Crypto.

The land of blockchains has had some persistent obstacles to mass adoption throughout the last few cycles. Foremost among them are the ability of chains to be scalable and interoperable. Despite making significant strides in the last decade, the siloed and decentralized nature of blockchains has by design required them to sacrifice their ability to scale and talk securely to one another.

Industry solutions have evolved over the years, but all have been piecemeal and unable to adequately address both issues together and in a secure way. The vision of Polygon 2.0 is an impressively innovative approach to Layer 2 solutions that solves both of these pain points without sacrificing security, and still maintaining effective decentralization.

If successful, it will make Polygon and their rebranded $POL token a central pillar of all smart contract blockchains with an importance and market cap second only to Ethereum.

What is Polygon 2.0?

Polygon 2.0 is simply an Ethereum layer 2 solution with a common framework called the CDK (Chain Development Kit). It is a ZK rollup layer 2 tech that builds on top of an interoperable layer called the Staking Layer, a common chain coordinator that allows any chain built with the CDK to connect to it.

The innovation is what they term the “Interop Layer” (“Staking Layer”), a protocol that accepts ZK proofs from other Polygon chains, aggregates them and then posts those aggregated proofs and updated chain states to Ethereum. Essentially a common middle-chain that is itself a Layer 2 connecting all CDK chains … a basket into which all sub-chains will send their transactions to be posted back to Ethereum in batches.

Main features of Polygon 2.0:

• Custom-built chains using the open source chain development KIT (CDK). The only mandatory item is the staking of POL tokens to launch the new chain. (eg. Block times, settlement frequency, permission options, gas token type are all customizable)
• Native interoperability where users will not even know which chain they are using, no network or bridging requirements, and fully compatible, including with Ethereum itself.
• Near-instant finality
• Global Liquidity from all CDK chains. All liquidity on any chain is automatically accessible by all other POL zkEVM chains, finally solving the fractured liquidity issues that exist on all Layer 2s currently.
• Infinite number of sub chains are possible, from public open chains to permissioned custom built chains. Basically, an evolved and improved version of the Avalanche subnets with far better interoperability.
• Existing blockchains can also plugin and integrate the CDK
• The existing Polygon POS will be connected to the new framework allowing for seamless transactions with the existing TVL on the Polygon network
• Phenomenal validator incentives will yield very quick and aggressive adoption, without adding additional $POL inflation. Essentially, validators must stake POL tokens on the Staking Layer (Interop layer) and as new chains plug into the ecosystem, they can offer native tokens (or USDC, POL, ETH) incentives to attract validators to subscribe to simultaneously validate their sub-chain.
• Launching a new sub-chain with Polygon 2.0 is easy and frictionless. As soon as enough validators subscribe, the new CDK chain goes live.
• Migration of $MATIC to $POL will be on a 1-to-1 basis
• True settlement to Ethereum happens in minutes as opposed days as in the case of an Optimistic Rollup (eg Arbitrum and Optimism)

TOKENOMICS:

• Total supply remains at 10B $POL
• Inflation will be set at 2% per year for 10 years, consisting of 1% validator rewards and 1% treasury fund for development and marketing. After 10 years, can be maintained or reduced by governance (not increased)
• $POL token to be used for GAS fees and staking on the Interop Layer (main connective coordination layer)
• $POL to be used for Governance

Investment Thesis:

The Polygon 2.0 vision is to create a value layer for the internet, a connected, customizable and infinitely scalable layer built on top of Ethereum that removes the fractures between existing Layer 1s and 2s and allows a user to simply plug in an use any features and access all liquidity from any chain that has integrated the open source Polygon Chain Development Kit (CDK).

The Polygon team has proven its ability to build and deliver on some pretty ambitious plans, and has one of the best business development team in the entire cryptosphere. If they are able to deliver on this grand vision of a common layer for all Ethereum Layer 2s, while bringing in existing Layer 1s, the $POL token undoubtedly becomes the 3rd most valuable token behind BTC and ETH, and will mint some serious millionaires this cycle.

As of Oct 4th, 2023, the $POL token was active on testnet, and the rebrand and migration is almost certainly going to occur in the early stages of the coming bull market (TBC). Once the marketing teams and conferences begin to see the incredible ambitious vision being presented by Polygon 2.0, the imaginations of energetic bull market degens will create a far better vision than any reality that eventually comes to fruition.

In other words, the investment thesis for this bull run is based more on vision and potential rather than execution, which is likely to be incremental and be completed in later cycles. If crypto twitter has taught us anything, it is that imagination is what provides the moonshots, and reality that brings them back to earth.

Conclusion:

As the perfect storm for crypto continues to develop, and we move further along the bull market trajectory, projects that take aim at the underlying limitations of current blockchain technology will have a ticket to massive returns.

Unlike the solutions to date, Polygon’s approach to solving the scalability and interoperability limitations of existing Layer 1s and 2s is a comprehensive one that tackles the full gambit of obstacles to mass adoption. The prize is very large, but the payoff equally so. Polygon 2.0 is the most all-encompassing attempt at creating a true unified set of blockchains with common liquidity and seamless interoperability, by a team capable of pulling it off and the resources to follow through.

Given the lagging performance as compared to most other blue chip Altcoins, I have continued to add to my bags in anticipation of a big run-up as we near the Polygon 2.0 rebrand.

Good luck out there, and see you on the next one!

Sovereign Crypto

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