The Ethereum upgrade has now been launched on Polygon, a layer-two scaling network, to improve fee visibility. The EIP-1559 went live at block 23850000. The Polygon team announced the upgrade, after the successful deployment on the Mumbai testnet.
The new upgrade was initially introduced in August 2021 on the Ethereum network through the London Hardfork. EIP-1559 will remove the first-price auction as the main gas fee calculation. With this upgrade, the network will set a base fee for all transactions in a block and users can also add a tip to prioritize their transactions. Sources said this will result in fewer spam transactions. There will also be less congestion in the network. It should be noted that the base fee increases automatically. This happens once the block is filled up.
Token burning for MATIC will also be introduced. As such, it will be a deflationary asset. MATIC, as per the Polygon team, would be reduced by 0.27%. This means there will be 27 million MATIC in a year.
Overall, the upgrade EP-1559 will ensure that dApp users, validators, and delegates on the network can have the advantage of lower fees for transactions. They will have the upper hand because of the deflationary pressure. The rewards for processing transactions are made in MATIC.
With EP-1559, users can enjoy a discrete base fee for transactions, plus a priority fee to speed up processing. It should be noted that the base fee fluctuates – depending on the network congestion. However, users have to keep in mind that fees are determined by supply and demand. Users can estimate costs and don’t have to overpay.