A bull market is a period of time in financial markets when the price of an asset or security rises continuously. The term "bull market" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities. The commonly accepted definition of a bull market is when stock prices rise by 20%. The opposite of a bull market is a bear market, when prices trend downward.

The Bull Market unfolds through 4 distinct phases.

We're currently on the cusp of Stage 1. Let's take a practical look at how to navigate this market cycle wisely, so you don't miss out on opportunities to secure your financial future.

Here's what we're going to cover:

1. Practical strategies for each stage of the bull market.
2. Smart moves to maximize your earnings.
3. Valuable insights to steer clear of common pitfalls.

Stage 1: Accumulation

We've been in this phase for about a year now. Following the Terra crash, the FTX dip, and concerns about the stability of USDC, the market hit rock bottom.

The worst is likely behind us (unless Binance/Tether mishandles the situation). Prices have settled, and major news hardly stirs the market, like when PayPal introduced a stablecoin, for example. Currently, there's not much new money flowing in. Volatility is low, and it's mainly a small group of about 500 enthusiasts vying for the next big trend.

This phase is about laying the groundwork. Strategically position your assets for future moves. Plant the seeds now and reap the rewards when the bull market arrives.

Action Plan:

• Invest in promising projects.
  Look for projects with good potential for growth in the upcoming bull market. Choose ones with the right product-market fit, competitive edges, a solid team, a clear roadmap, and strong financial foundations.
• Keep some resources in reserve.
  It might be tempting to go all in on well-established projects that have dropped significantly from their peak. However, remember that many of the future winners are yet to emerge. People often prefer to get in early on something entirely new.
• Avoid excessive trading.
  Don't put your progress at risk by making impulsive moves out of boredom or chasing the next meme coin. Prioritize your financial stability over chasing quick wins. Be patient and wait for the right opportunities.
• Enhance your knowledge.
  The bull market isn't the time to start learning; it's the time to act. Use this phase to learn, so you don't end up struggling to understand new developments during the bull market.
• Keep an eye on liquidity trends.
  Watch how much money is flowing into centralized exchanges (CEX). Observe stablecoin usage. Track the growth of Total Value Locked (TVL) in DeFi. These trends provide insights into the market's dynamics.

Stage 2: Early Bull

Prices start rising, and pessimists find themselves in disbelief. Every couple of months, skeptics predict that BTC will soon drop to $12,000.

Don't let skepticism hold you back. Lingering bear market memories can limit your profit potential. Ironically, in the early stages of the bull market, you should embrace calculated risks before the crowd joins in.

What Can Fuel the Bull Market?

1. Major developments, like the approval of BTC or ETH ETFs, or a country adopting BTC as a legal payment method.
2. The BTC halving is approaching in 2024. While history isn't a crystal ball, collective belief can have a big impact.
3. New paradigms. Previous cycles introduced DeFi and NFTs. What will be the hot trend this time? GambleFi? TelegramBots? A resurgence of NFTs? GameFi? RWAs? There will undoubtedly be sectors we can't even imagine yet.
4. Macro changes. If the Fed changes its policies and stops raising interest rates, more money could flow into the market. Regulatory changes could create a more crypto-friendly environment in the US and elsewhere.
5. Reducing barriers. Onboarding newcomers into the crypto world is still a challenge. Better wallets, user-friendly dApps, and more accessible platforms are on the horizon.
6. East Asian influence. Crypto Twitter often focuses heavily on the US, but we shouldn't underestimate the impact of Korean fans and the growing trend of crypto in Hong Kong.

All it takes is one significant event to set off a chain reaction.

Some risk-takers achieve tremendous success, significantly improving their financial situation. They upgrade their lifestyles and eagerly share their stories. Over time, their success stories influence their social circles.

Action Plan:

1. Let go of underperforming assets and invest in winners.
   Don't get too emotionally attached to your assets. A project that has already grown fivefold might have room for tenfold growth. Focus on metrics, momentum, and sentiment. Be decisive when it comes to underperforming assets.
2. Take profits along the way.
   Trying to perfectly time the peak is a futile effort. Don't aim to squeeze every last cent from a trade. Set a systematic approach for taking profits and stick to it.
3. Be cautious about taking excessive risks.
   Some start using leverage, tapping into home equity or retirement savings, or selling BTC/ETH to chase speculative coins. It's okay to take risks, but don't let recklessness cloud your judgment.
4. Keep it simple.
   Exceptional projects can have weak fundamentals. Tokenomics might be less than ideal. But remember, prices rise when others buy in. Complex projects may deter potential investors. Keep it straightforward.
5. Follow influential figures.
   They know how to increase token value and manipulate emotions. Keep in mind that these leaders often fade. However, you can join their journey early and exit before any potential downfall or avoid them altogether.
6. Don't ignore regular people.
   It's easy to get caught up in the DeFi Crypto Twitter echo chamber, where discussions revolve around complex terms. Engage with ordinary folks on platforms like Reddit and YouTube comments.
7. Focus your efforts.
   Specialize in a few sectors. Trying to keep up with the entire market can be overwhelming. It's okay to miss some opportunities rather than jumping in late and becoming a source of liquidity.

Stage 3: Bull Market Peak

Now we're in the full swing of Stage 3 out of 4.

The bull market becomes a feeding frenzy. As prices soar, FOMO kicks in. Positive feedback keeps pushing prices higher.

Sudden surges are commonplace. A small investment in a speculative coin can yield life-changing profits. Crypto conversations are everywhere, from getting a haircut to taking an Uber ride. FOMO and euphoria dictate the market. The idea of an endless party takes over, and rational thinking takes a back seat.

People leave their jobs to become full-time crypto traders. Some even sell their homes to jump into crypto investments.

Here are potential signs of the peak:

1. Mainstream media shifts its focus to the crypto world. We start hearing stories about people looking for hard drives with 8,000 bitcoins or trading 10,000 bitcoins for two pizzas.
2. Financial YouTubers, like MeetKevin, Max Maher, and Graham Stephen, flood their channels with over three crypto videos daily.
3. Renowned brands like Pepsi and McDonald's casually mention crypto to stay relevant. Mainstream celebrities seek profits through sponsorships or by launching their NFT collections.
4. Self-promotion reaches new heights. People with Rolex watches flood your social media feed, and new cars are everywhere. If your Twitter feed is overflowing with self-promotion, it's a sign to be cautious.

The prevailing sentiment is that this time is different. It's essential to resist impulsive behavior.

In this phase, your primary focus should be to plan your exit strategy. Remember that the celebration won't last indefinitely. Take some profits. Your future self will appreciate your caution. If you don't secure profits, the market will likely reclaim them.

Stage 4: Decline

The rise might be followed by a fall. The bullish market peak has likely arrived. The question now is whether it's a true peak or if there's a "super cycle" ahead.

They'll try to convince you that this time is different, and we've finally gained mainstream recognition. Watch out for talk about supercycles, theories of Bitcoin extensions, or artificially created charts. Some might claim that this cycle will last a few more years!

Keep in mind that everyone has a financial interest in extending the euphoria. The goal is to direct more funds toward riskier coins.

Amid this, you'll see glimmers of promise and optimism. When Bitcoin reached its peak in November 2021, the following activities included the OHM fork, FTM/Solidly, and Luna.

As prices decline, pessimists who missed the two-year bullish cycle and the chance for life-changing wealth start emerging.

With several projects competing against Ethereum, it's evident that some are garnering public attention and building their own communities. This is a positive sign, as many projects won't last in the long run, and only a select few will capture attention and adoption. One such project is Avalanche.

Coin Price History

$AVAX is a fixed supply token, similar to $BTC, which ensures scarcity and protection against devaluation due to inflation, unlike other staking platforms. To put it into perspective, Polkadot has a 10% annual inflation rate, and by 2050, the supply of DOT will grow from 1 billion to 16 billion. Assuming that the prices of DOT, ETH, and AVAX remain constant, here's how their market caps would look in 2050:

ETH: $157 Billion.

Avalanche underwent over a year of development before its mainnet launch in September 2020. The project was initiated by Ava Labs and led by Emin Gün Sirer, a Cornell researcher with a deep background in Bitcoin and decentralized networks. Ava Labs has three co-founders, including Emin Sirer, a prominent computer scientist associated with Bitcoin. Sirer had long been concerned about Bitcoin's scalability, and the Avalanche consensus mechanism was a direct result of his research, allowing significantly higher transaction volumes compared to Bitcoin, even competing with entities like Visa. Similar to Sirer, co-founders Kevin Sekniqi and Maofan "Ted" Yin also have connections to Cornell University. Sirer serves as an advisor to Yin, who is pursuing a Ph.D. in computer science. The rest of the team includes experts in computer science, economics, finance, and law.

Avalanche's Objectives

Avalanche is an open-source platform for launching decentralized applications and enterprise blockchain deployments within an ecosystem designed for scalability and rapid transaction finality. It is the first decentralized smart contract platform built for global financial scale, with almost instant transaction finality. Ethereum developers can quickly build on Avalanche because the Solidity language works directly.

Avalanche (AVAX) is a blockchain ecosystem designed for secure, globally distributed, and decentralized networking. It has been called the "platform of platforms" by developers. Uniquely, the protocol leverages three separate blockchains to create a trustless framework that can communicate with each other. Additionally, Avalanche offers a payment solution in the form of the AVAX cryptocurrency, with the goal of outperforming ETH 2.0 in terms of production yield and latency. AVAX is designed to address several limitations of older blockchain platforms, including low transaction speeds, centralization, and scalability, using various innovations to achieve this. This includes the unique Avalanche consensus protocol, promising low latency, high production capacity, and resistance to 51% attacks.

Avalanche enables individuals and companies to easily deploy their own blockchains built for their specific purposes, whether for private (permissioned) or public (permissionless) use. This is unique because it uses a combination of custom-built blockchains, alongside a robust proof-of-stake consensus mechanism, to create an exceptionally decentralized platform for developers to build on. Due to its compatibility with Ethereum tools, developers can easily port their Ethereum dApps to Avalanche and launch a wide range of decentralized applications on the platform. These applications can run on their own Avalanche blockchains, giving developers incredible control over their security and usability, as well as determining who can access them.

Strengths and Weaknesses of the Project

In addition to its high scalability, Avalanche is built to address other major issues facing today's blockchain-based systems: Interoperability. It achieves this by allowing blockchains within and between subnets to communicate with each other, enabling them to complement each other and support cross-chain value transfer. It is also highly inclusive. While many proof-of-stake blockchains only allow a small number of validators to participate in achieving consensus, Avalanche allows anyone staking at least 2,000 AVAX to participate.

Around early February 2021, an Ava Labs engineer reported a minor code bug that severely impacted the Avalanche blockchain due to increasing network congestion. The blockchain, which had been touted for its ability to handle high transaction volume, was slowed to a standstill by an unusually high volume of transactions.

Avalanche launched in September 2020 with a claim that it could process 4,500 transactions per second. While positioned to capture market share from Ethereum, Avalanche has also been announced as a way to complement and connect rather than directly compete with its predecessor. Avalanche has three "default chains," including the so-called "contract chain" that supports Ethereum Virtual Machine and its Solidity programming language. However, this chain was part of the code bug problem. In short, to increase transaction throughput, the three Avalanche chains remain separate and different from each other. Each performs a range of transaction types, and it's time for an asset to jump to another chain.

This process was placed under extreme stress, following the launch of a new decentralized money market called Pangolin at the time. Given Avalanche's decentralized nature, it would be virtually impossible for all nodes to collude and roll back the problematic transactions. A solution was found through a phased patch deployment, similar to how any software gets updated.

In conclusion, Avalanche has been rapidly advancing. The entire development stack and product releases are prepared for its new features. One of the major developments is the Apricot upgrade, which has brought various advancements to Avalanche. This includes 'certifiable pruning', allowing nodes to be online in a fraction of the time; there is a freeze and unfreeze function for token issuers; and native ERC20 support. Beyond this, the layer 2 decentralized exchange platform, Injective Protocol, will be integrated with Avalanche to bring a wide range of derivatives that can operate alongside the platform. Furthermore, in its broader vision, there are plans to add a 'Privacy VM,' which will allow private smart contracts on Avalanche, one of the most significant upgrades on Avalanche's roadmap.

Investing is a journey that combines both financial knowledge and psychology. While conducting fundamental research is crucial, an investor's ability to manage their emotions and thought patterns is equally important for achieving success. Even the most seasoned investors can sometimes stumble due to their own emotional vulnerabilities. They don't always reveal that they are skilled at overcoming these weaknesses.

Financial skills can be taught in business schools, but mastering the psychology of investing and controlling one's emotions is a far more challenging skill, and it's best honed through real-life investment experiences. Fortunately, I have a valuable guide to share.

In this article, I'll provide ten lessons to help us enhance our own investment mindset and avoid common behavioral mistakes.

#1 - Nothing Comes for Free

There's no such thing as a free lunch. Everything worth pursuing comes with associated costs. In the world of cryptocurrency, the price of chasing significant gains is the ability to endure extreme volatility. Crypto can offer life-changing profits within months, but it's also known for its high price fluctuations. To reap high rewards, investors often have to bear substantial losses. They need the mental fortitude to handle this volatility and manage the emotions that come with watching their portfolios fluctuate.

Over the long term, crypto investors who can withstand this volatility tend to see positive returns. For example, Ethereum (ETH) has experienced multiple 50%+ drops in its seven-year history. Investors who panic and seek quick profits usually exit the market early. Those who study fundamentals and stay resilient continue to profit.

#2 - No One Is Irrational

Our personal experiences shape our worldview, including how we handle money and investments. There's no single "right" or "wrong" way to invest; it depends on an individual's risk tolerance, time horizon, and financial goals. For example, meme coins might seem like a poor investment to seasoned investors, but for newcomers or those with limited interest in crypto, they can serve as speculative assets to achieve financial objectives.

Different investors have different preferences, and this diversity leads to various perspectives. Avoid judging others' decisions, as everyone in the market is pursuing their unique financial journey.

#3 - Luck vs. Risk

Luck and risk are two sides of the same coin.

Both can impact unforeseen events that affect investment returns. Smart investors prioritize risk management, diversifying their portfolios and using hedging strategies. Luck can also play a significant role in investment returns. The world's most successful people have often been in the right place at the right time. To reduce bias, try to find role models with qualities you can realistically emulate.

#4 - Contentment Matters

Greed is a potent, addictive force. A desire for more is natural when it drives people to work harder and improve their lives. However, when greed turns into unrealistic expectations, it can lead to reckless risk-taking, especially in the world of crypto, where FOMO reigns during bullish markets.

The mistake of feeling inadequate can lead to reckless risk-taking and ruin. Su Zhu and Kyle Davies, co-founders of the hedge fund 3AC, might have lived like kings with their profits during the 2020-2021 bullish market. However, their desire for more eventually led to the downfall of their company as they took on more leverage for riskier bets.

Don't compare yourself to others, focus on your own standards and financial goals, and always aim to be content without exceeding your current income.

#5 - Money as a Tool for Freedom

Crypto isn't just about wealth; it's about freedom. It empowers individuals to control their time and live life on their terms. Positive freedom, as philosophers call it, expands your control over your life, bringing you closer to a state where you can live each day according to your desires.

#6 - The Power of Compound Growth

Compound interest is a remarkable force that can multiply wealth over time. While short-term market fluctuations can be distracting, don't forget that significant gains often come from compounding investments over the long term. Take Warren Buffett, for instance, known for his long-term approach. Most of his wealth was accumulated after age 59, illustrating the power of compounding.

Of course, Buffett is also a brilliant investor with a knack for making very good bets. But we can see that most of Buffett's wealth can be attributed to being in the market for a long time to compound massive gains.

The same principle can be applied to crypto as the space continues to grow over the coming decades.

#7 - Gaining and Preserving Wealth

Gaining and preserving wealth require different mindsets.

To become wealthy, one has to be optimistic. This is because optimists are more willing to take personal and/or financial risks, go against the grain, and see potential in ideas, businesses, or projects that have the potential for significant returns.

However, to preserve wealth, one has to be conservative. This doesn't mean hoarding money under the mattress. But it's wiser to employ a balanced and more cautious mindset and investment strategy when the priority is to protect, not grow, one's capital.

You should handle your money with the wisdom of a conservative while investing with the optimism of an opportunist.

#8 - Pragmatism Over Rationality

Strive to make practical decisions that suit your current situation, even if they don't always align with rational thinking. For example, consider dollar-cost averaging (DCA) over a lump-sum investment. While rationality might favor a lump sum, DCA can help reduce regret if prices drop soon after investing.

#9 - Embrace Change

People change, and so do their life preferences. It's easy to underestimate how much life changes can impact financial goals. As life evolves, so should your investment strategy. Maintain a balance between risk-taking and conservatism when planning your finances.

#10 - Embrace Optimism

While pessimism may sound smart and realistic, it's usually more profitable to be optimistic in the long run.

The pull towards pessimism is partly driven by the nature of good and bad news. It's easier to notice when bad things happen since they usually happen suddenly, while the benefits of good news take time to materialize.

For example, Terra's rapid collapse, wiping out tens of billions in just a few days. A crypto pessimist might point to this as a reason why crypto overall is a failure. But in doing so, a pessimist would overlook the fact that over the last 14 years, crypto has still managed to create a trillion-dollar ecosystem that is independent, powerful, and resilient, capable of withstanding extreme events like the collapse of an 11-digit market capitalization stablecoin without government intervention. An optimist would point out that despite the chaos, we are still standing.

The crypto market has endured crises but continues to grow. Optimism can help us see the bigger picture and how we're still building, even in the face of setbacks.

So, pessimism may sell in the market. But in the long run, it's usually more profitable to be optimistic.

Imagine the world of cryptocurrencies like a new, uncharted planet, waiting to be explored.

Some folks are skeptics, seeing this planet as empty and purposeless, or even as a haven for greed.

Others, the optimists, view this planet as full of potential – a blank canvas where we can build a better financial system and a superior internet platform.

Early settlers on this new planet come from diverse backgrounds. There are explorers who are drawn to the frontier. Speculators, innovators, and researchers are excited about the new possibilities. And regular people, especially those who've been left behind in the traditional financial world.

The governance on this planet is still unclear. Some places on Earth forbid their residents from visiting, while others are trying to establish a foothold in this new world.

The history of speculation and wild price swings has created social taboos around this new planet, making many people wonder: what's in store for the future?

Current speculation is just part of the process of establishing this new world. It's like the gold rush of 1849 that transformed San Francisco from a small town into a major city and a hub of technological innovation. The current frenzy of speculation in the crypto world is attracting settlers and driving the development of the infrastructure needed to turn this barren planet into a thriving crypto civilization.

Why Crypto Matters

Building a new world is a big undertaking, but why is it worthwhile?

In places where existing systems fall short, a new ownership system is desperately needed. Crypto-based currencies like Bitcoin and Ethereum are used worldwide, especially in countries like Argentina, Turkey, and Ukraine.

Many skeptics wonder when the "killer apps" of crypto will emerge, but they're already here. Cryptocurrencies offer secure, programmable, and open financial services. They're a lifeline for people who lack access to traditional banking due to high fees or distrust in centralized systems.

Crypto isn't just about money; it's about creating a new, decentralized financial system that's cheaper, more convenient, and more inclusive. Stablecoin payments are becoming more popular, loans are accessible through code, and even systemic risks can be reduced through global collateral tracking.

Crypto Speculation

But why all the speculation? Is it really necessary? It turns out that speculation plays a crucial role in technological revolutions.

Speculation helps attract attention, investment, talent, infrastructure development, research, and adoption by major players. It's part of the process that transforms innovative ideas into mainstream realities.

In the world of crypto, speculation is the first step toward digital ownership. It allows people to create rare assets and trade them. The early days of Bitcoin were full of excitement, experimentation, and trading. Now, more than a decade later, Bitcoin and other cryptocurrencies have moved from being speculative novelties to global financial assets.

The Dark Side of Crypto

While speculation is essential, it can also have negative aspects. Too much speculation can create noise in the market, making it difficult to distinguish valuable projects from scams.

Short-term speculation is a zero-sum game, where experienced traders can take advantage of newcomers. It's not inherently wrong, but sometimes focusing on the long-term benefits everyone more.

There are also bad actors in the crypto world, including scammers and hackers. Some regulation or self-regulation may be necessary to protect newcomers.

Why It's Taking So Long

Crypto is almost 15 years old, so why isn't it mainstream yet?

Building consensus around crypto takes time. Technology can only develop at a certain pace. Adoption is a complex social process. However, it's remarkable that we can already transact with millions of people using cryptocurrencies like Bitcoin and Ethereum.

In the end, crypto is more than just speculation. It's a new way of thinking and building a better financial world. So, don't be too quick to dismiss it. Explore this new world and see what substantial builders are creating and how real people are using it.

Bitcoin has seen a correction of around 3.5% in a single day following numerous negative reports in the global and American economy from October 11th.

This correction has raised uncertainty regarding the anticipated appreciation in October, marketed with the narrative 'Uptober,' and it has left investors concerned about Bitcoin's movement through the end of 2023.

Bitcoin Falls After FOMC Meeting Publication

From news of war to the FOMC meeting results, most risk assets worldwide are currently experiencing negative sentiment due to the high level of economic uncertainty.

One factor exacerbating this situation is the publication of the recently held meeting results at 02:00 AM WITA (Western Indonesia Time) early in the morning.

FOMC is a committee within the Federal Reserve responsible for helping determine the appropriate monetary policy stance for the U.S. economy. The committee is in charge of open market operations, which function to adjust the money supply to align with inflation targets and the economic needs of America.

In the meeting's publication, one of the main narratives discussed is related to determining the appropriate benchmark interest rate through the end of the year.

It's reported that the majority of FOMC members agree that the benchmark interest rate should rise in the coming months, especially through the end of the year, to combat the continually rising high inflation. Other FOMC members concur that inflation is high but still under control, so the benchmark interest rate doesn't need to rise but isn't ready to decrease either.

Both perspectives indicate that the U.S. economy hasn't improved yet, and, as a result, the benchmark interest rate is not ready to decrease. The economic condition is further reflected in the inflation rate, which remains at 3.7%, far from the Federal Reserve's target of 2%.

Therefore, there is a possibility that an increase in the benchmark interest rate could still occur, especially through the end of the year, which is causing most risk assets like Bitcoin to decline at the moment.

U.S. Economic Data Schedule of Publication

Alongside the FOMC meeting publication, the United States will also release economic data at 20:30 WITA.

Some of this data includes annual and monthly core and general inflation data, as well as monthly CPI figures and social assistance fund data.

Currently, there are predictions from economists that annual core and general inflation data will move lower compared to last year. However, given the state of the economy and government spending, especially on aid to other nations, this year's inflation figures might be higher, and those predictions could be incorrect.

The possibility of an incorrect prediction is also driven by monthly inflation figures predicted to remain stagnant or increase, along with social assistance funds and CPI predicted to rise.

These data points indicate that the prices of most essential goods are still relatively high, and people are struggling to meet their basic needs because everything is expensive. The reality of expensive goods is a result of the declining purchasing power of the public due to the continuously increasing supply of the U.S. Dollar.

The mismatch between monetary and fiscal policies is also causing inflation to continue rising, which, in the long run, worsens the U.S. economy's condition.

The long-term deterioration of the U.S. economy affects the U.S. Dollar and financial markets because most financial assets still have a significant transaction volume in U.S. Dollars, including cryptocurrencies.

Due to all these conditions, in the last few days, the majority of cryptocurrency assets have been declining, especially yesterday when Bitcoin dropped by about 3.5%.

Analysis of Bitcoin Movement

However, tonight, there is a possibility of a sudden positive sentiment for Bitcoin and most risk assets, stemming from inflation data.

If inflation data rises, it is likely that the U.S. Dollar will weaken, and most risk assets, including cryptocurrencies, will rise. This is because of the negative correlation between these two asset categories, where the U.S. Dollar falls into the safe-haven asset category, while cryptocurrencies fall into the risk asset category.

Bitcoin Sentiment Data from Coinglass

According to data from Coinglass, at present, the majority of traders are more inclined to open long positions, creating a narrative that most traders believe in the appreciation of Bitcoin, especially tonight. This suggests that most traders have faith in the persistently high inflation in the United States, even higher than last year, which could be a positive sentiment for Bitcoin.

BTCUSD Daily Chart

If indeed there is a price appreciation, it is highly likely that Bitcoin will continue to recover and return to the strong appreciation zone it has been in since September 2023.

However, if inflation does, in fact, decrease as predicted by economists, there is a possibility that Bitcoin will return to the strongest support level in 2023, around the $25,000 mark. Such a decline would eliminate hopes of a substantial appreciation by the end of the year and potentially initiate a period of consolidation as seen in recent months.

This movement would also negate the "Uptober" narrative that has been eagerly anticipated by the majority of crypto enthusiasts in recent weeks.

The current uncertainty is generating high volatility, leading most investors to opt for asset protection by selling, as evidenced by the ongoing corrections with low trading volumes. Therefore, investors and traders are advised to remain vigilant, avoid FOMO (Fear of Missing Out), and continue to utilize risk management strategies in light of the information circulating in the market.

Polygon has just made a new announcement regarding the continuation of the innovation narrative into Polygon 2.0, which was announced in June 2023. This announcement provides some explanations about what will happen, including the migration from the MATIC token to a new token called POL.

Polygon Token Migration from MATIC to POL

On September 14, 2023, Polygon made a publication across all its social media platforms regarding the development of Polygon 2.0. The narrative of ecosystem changes that has been announced since June 30, 2023, has finally yielded results in the form of the launch of three Polygon Improvement Proposals, with the main focus being on the POL token.

It is reported that Polygon will undergo a token migration, where the primary token of its ecosystem will change from MATIC to POL.

This announcement marks the beginning of phase zero implemented by Polygon, extending until the end of 2023 as the initial step in transitioning to Polygon 2.0.

According to the information circulating, this token transition will be completed in the fourth quarter of 2023 or by the end of this year. In the future, the exchange rate between MATIC and POL will be one-to-one, where 1 MATIC will be equivalent to 1 POL. The existence of the POL token will render MATIC obsolete because all transactions within the Polygon 2.0 ecosystem will utilize POL.

The primary reason for issuing POL and discontinuing the use of MATIC is that the Polygon team wishes to embark on a new era of full innovation, thus opting for a new token within its ecosystem.

Furthermore, according to the Polygon team, POL will facilitate integration across both the new and existing ecosystems that will emerge with the changes in Polygon 2.0.

According to the information circulating, the initial supply of POL in circulation will be 10 billion POL, with its supply increasing by approximately 2% annually. This increase will be evenly distributed between validators as staking rewards and the community reserve or treasury.

Launch of Polygon Improvement Proposals in Late 2023

All of this information is detailed in three Polygon Improvement Proposals (PIPs) published on the official Polygon website.

There are three PIPs: PIP 17, PIP 18, and PIP 19, each of which explains what will happen with POL and the changes to the Polygon 2.0 network ecosystem.

PIP 17 explains the migration process from MATIC to POL, including the smart contracts that will handle the migration process, the distribution of supply, and the initial supply.

PIP 18 explains the disappearance of MATIC and the transformation of the Polygon 2.0 network transaction ecosystem with the POL token. Some of these explanations include how all transaction fees within the Polygon 2.0 network ecosystem will use POL, details about staking POL to become a validator, and the initial stages of the migration from MATIC to POL. Additionally, there is an explanation of how Polygon will launch a dedicated staking network layer and transition from the staking layer in Polygon to the staking layer in Polygon 2.0.

Finally, PIP 19 explains the transition of the Polygon 2.0 network from using MATIC as transaction fees to using POL as transaction fees.

With the publication of several PIPs, Polygon once again emphasizes that the transition plan has been carefully considered, and there will be several changes within the Polygon network ecosystem itself.

Firstly, there is a focus on the zkEVM system for Polygon 2.0 compared to the current Polygon network, which uses a Proof of Stake system. Although it still maintains a Proof of Stake nature due to the staking mechanism for becoming validators within its network, Polygon 2.0 will prioritize a Zero Knowledge mechanism based on the Ethereum Virtual Machine. This mechanism is designed to enhance the quality of the Polygon network, enabling faster transactions with lower costs while remaining compatible with the Ethereum ecosystem.

Additionally, alongside the launch of tokens that will be compatible with the zkEVM mechanism, Polygon 2.0 will introduce a Chain Development Kit (CDK). This CDK functions similarly to a Software Development Kit commonly used by developers to build applications. However, in the CDK developed by Polygon 2.0, developers aiming to create layer-two blockchains with the zkEVM mechanism of Polygon 2.0 will have a guide that streamlines the blockchain creation process, making it faster and more accessible without starting from scratch.

Overall, this news has generated positive sentiment within the Polygon ecosystem, as it receives strong support from the community.