Polygon (MATIC) schedules long-awaited EIP-1559 upgrade next week

Ethereum’s leading Layer 2 scaling solution, Polygon, announced yesterday that the much-awaited Ethereum Improvement Proposal (EIP) 1559 upgrade will be live on the mainnet next week.

Polygon London HardFork Going Live

In one official announcement on Wednesday, the India-based project noted that the upgrade, which will begin burning MATIC, is scheduled to go live on mainnet on January 18, 2022 at around 8 a.m. UTC. .

The EIP-1559 upgrade, commonly known as the London hardfork, completely revolutionized the way the fee market works on the Ethereum network. It removed the first price auction as the primary mechanism for charging fees and introduced a base fee that was burned instead of being paid to miners.

While this change does not reduce transaction fees, which are governed by the forces of demand and supply, it does allow users to better estimate costs and reduce the number of users who overpay.

However, these changes will have far-reaching implications for all Polygon stakeholders, including MATIC native token holders, validators and delegators, and developers of decentralized applications. dApp) and users.

Deflationary effects on MATIC

As MATIC has a fixed supply of 10 billion tokens, any decrease in the number of coins available will have a deflationary effect on the asset.

The project’s core team notes that their analysis concludes that the annual MATIC burn will represent 0.27% of the token’s total supply, approximately 27 million MATIC.

For dApp users on the network, the EIP-1559 upgrade will further their benefits by enjoying even lower fees. However, there will be fewer MATIC tokens. On the other hand, developers will get a boost as all of their Ethereum tools will work seamlessly and face minimal adverse effects.

Deflationary pressure will be mutually beneficial for both validators and authorizers as their rewards for processing transactions on the Polygon network are calculated in MATIC.

Additionally, the changes will result in fewer spam transactions and less network congestion as the base fee automatically increases as the block is filled.

Meanwhile, Polygon recently discovered and fixed a bug that could jeopardize more than $24 billion worth of MATIC tokens.


Thanks for Reading

Enjoyed this post? Share it with your networks.

Get more stuff

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

Leave a Feedback!