Polygon released its EIP-1559 upgrade to begin the burning of MATIC tokens in real-time.
A partial network fee-burning technique announced in August 2021 has resurfaced in the Ethereum community. Polygon, an Ethereum sidechain network, is making headlines today after implementing the identical EIP-1559 upgrade. The official blog of Polygon announces the public about the implementation of Ethereum Improvement Proposal 1559. This new establishment will also bring the burning of the native MATIC token and have better fee transparency.
The “Deflationary” Group
The highly-anticipated upgrade brings $MATIC burn and improved fee visibility.
Find out more: https://t.co/7fRxSZIrdv
— Polygon | $MATIC 💜 (@0xPolygon) January 17, 2022
Furthermore, at block height 23850000, the upgrade was enabled. Based on a first-price auction, the prior Polygon fee scheme is being replaced with this one. Efforts to increase fee visibility on the layer-2 scaling network have already begun. The following block’s transactions will have a separate base fee. In addition, a priority charge is provided to expedite the processing of your application. In other words, a two-step process for burning the tokens begins on the Polygon network and finishes on the Ethereum blockchain. Moreover, the Polygon team developed this interface to allow anybody to watch and participate in the burning process.
Due to supply and demand, this will not reduce transaction costs. However, as the base charge is the minimal price for inclusion in the next block, it will help consumers better predict their expenses. As a result, it will reduce the number of those who overpay. Likewise, a deflationary impact on MATIC is also possible since it is identical to Ethereum. This might influence the 10 billion tokens fixed supply and lower this supply slowly. According to the research, EIP-1559 is likely to use approximately 0.27 percent of the overall MATIC supply in a year.
This would have far-reaching consequences for Polygon’s investors and shareholders. Included are DApp users, validators, and delegators. After a month of effective installation on the Mumbai test net, the upgrade is finally out. However, this upgrade arrives at a critical moment. During this crucial time, an increase in petrol prices hurt Polygon. According to Dune Analytics, the cost of gas has soared, causing some validators to stop submitting blocks.
What about the price of MATIC?
Regarding the price, this cryptocurrency did not give a positive response. MATIC is trading at $2.20, down 9% in 24 hours at the time of writing.