Kuma 2.0 introduces a new policy matching API designed to improve the configurability of service meshes by addressing limitations in the previous system, such as unclear policy application and difficulties in composing policies due to shadowing and ordering issues. This upgrade involves the use of a "targetRef," a concept inspired by Kubernetes Gateway APIs, which categorizes dataplane proxies into logical groups like Mesh, MeshSubset, MeshService, and MeshServiceSubset, allowing for more precise and understandable configuration management. The new API simplifies understanding which proxies are configured, the traffic affected, and the specific configurations applied, by using top-level, from, and to targetRefs in policies. The system prioritizes these configurations using a hierarchical and lexicographic order, ensuring that more specific configurations take precedence. The introduction of these policies starts with features like MeshTrafficPermission, MeshAccessLog, and MeshTrace, with further developments planned for future releases. The changes aim to enhance ease of use and integration with the Kubernetes GAMMA initiative, although transitioning between new and old policies is currently not defined, with migration tools expected in future updates.