Friday, April 12, 2024

Polygon has launched the Ethereum EIP-1559 upgrade to burn MATIC.

The much-awaited upgrade of EIP-1559 went live on January 18, 2022 by Ethereum on Polygon. What this upgrade does is charge a partial network fee on the second tire extension network and set up a basic fee for all transactions. This is essential for burning MATIC tokens in real-time.

Each Polygon transaction charges a minimum amount (as a base fee) of network MATIC tokens for processing on the blockchain. This fee is no longer paid to Polygon validators like before – it is done directly by the network.

The new fee system will not compensate only priority fee validators – a tip that users can send with the base fee for a transaction. This is expected to be a good incentive for validators to process transactions faster.

EIP-1559 is expected to make the fee system on Polygon to be more stable and predictable so that it can withstand sudden surges in demand. Polygon’s team also expects that the introduction of EIP-1559 will lower the number of spam transactions and relieve congestion in the network. Thanks to EIP-1559, predictability in gas fees has been achieved, in turn creating a shift in Ethereum’s monetary policies. It has basically reduced the supply of ETH in circulation.

EIP-1559 is also expected to have a deflationary effect as Polygon has a fixed supply of MATIC tokens. The annual burn rate of MATIC tokens by EIP-1559 is expected to be around 0.27%

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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