As far as I know, the origin of the Matrix of Leadership in most TF fictions is being a part of the Star Saber from its hilt, and Smokescreen mention the sword is supposed to wield "the power of the Matrix." If anyone looks close enough, it seems the TFP Star Saber has a whole, or an empty slot at the base of its blade. Maybe the Matrix can "transform" into a shape that fits in it. Here's a little spoiler...... In the latest battle between Optimus and Megatron's using the Star Saber and the Dark Star Saber, Megatron broke the Star Saber. Maybe merging, or reuniting the Star Saber and the Matrix will be the way to fix it, and to unless its true full power.