Polygon (MATIC), as mentioned in 2022, has made significant strides in the cryptocurrency market. In addition to the partnerships that have defined Layer 2, it has established itself as the leading scalability network for Ethereum (ETH). Polygon’s recent developments have earned it a spot in the top ten regarding market capitalization. The project has some promises to deliver in 2023 that should excite its entire community. However, this article will discuss a change that occurred earlier this year related to the MATIC token staking process.
Regarding earning passive income from cryptocurrency, staking is one of the most well-known processes in the cryptocurrency market. It serves more than this purpose. By locking their tokens, investors who choose to be validators of a specific altcoin’s network can aid in the execution of blocks that validate transactions. Furthermore, these validators improve network efficiency, resulting in faster transactions and lower fees. It is critical for security and decentralization to ensure that more validators participate in staking a cryptocurrency. However, for a secure network to exist, these validators must be efficient.
Polygon Staking: what has changed?
Layer 2 demonstrates a strong emphasis on network security. As a result, the newly approved proposal includes an evaluation system that assists the community in determining which validators perform well or poorly. Validators who are not performing well will be removed to ensure Polygon’s security.
The entire process of removing the validator will be transparent, allowing the community to monitor what is happening. It is, without a doubt, a critical step for MATIC delegates. They must choose their validators and entrust their tokens to them. It is critical to have a system that shows healthy block producers in order for this trust to be maintained.
How is this identification done?
Polygon included a health status feature in the validator list to improve transparency and understanding of the token delegator. Health Status is divided into four colors, with green representing excellent performance and orange indicating that the validator’s performance is deteriorating. Problems arise when the status changes from red to black, indicating that the validator is already in a grace period and that black indicates that it will be removed from its position.
This is a significant advancement for Polygon and its community. It decentralizes governance by putting it in the hands of MATIC holders, allowing investors to decide on network improvements and opening up a new space in the decentralization arena.