Cryptocurrency News

Polygon Mainnet Welcomes EIP-1559 Upgrade

The Polygon ecosystem keeps growing as the network welcomes another esteemed integration. The network is welcoming the Ethereum Improvement Proposal (EIP) 1559 upgrade to its mainnet. With the latest development, Polygon will burn its native MATIC and facilitate a more transparent fee structure.

Primarily known as the London hardfork, the EIP 1559 upgrade brought revolutionary modifications to the Ethereum network. According to this, Polygon crypto prediction, MATIC is an altcoin with huge potential.

The Polygon team has already tested the upgrade on the Mumbai testnet. Now, they are ready to roll out the upgrade at 3 am UTC, 18th January. The much-anticipated upgrade removes the first-price auction as the primary system for fee evaluation. Instead, it places a nominal base transaction fee to be added to the blocks.

Moreover, it sets a priority fee to speed the process for users. The base fee can fluctuate depending on the number of transactions across the network before ultimately being burned. The entire process is a two-step affair starting on Polygon and completing on Ethereum.

Polygon has developed a public interface for users where they can review and join the burning procedure. Contrary to popular belief, EIP 1559 does not decrease the transaction fees as only demand and supply determine the gas prices. However, it allows users to easily estimate the charges since it involves a minimum price to be added in the next block.

The inclusion eliminates the concerns of overpaying and will certainly bring lasting benefits to Polygon stakeholders. With a limited supply of 10 billion MATIC, decreasing the available tokens will trigger a deflationary effect.

That is why Polygon is taking a lesson from the Ethereum upgrade to soften the impact on MATIC’s overall supply. According to their estimate, the annualized burn would represent 0.27% of the overall MATIC supply.

Sarah Picard
Sarah Picard is a part time contributor to CryptoWhile. She is pursuing her Journalism and mass communication degree. She has strong skill in curating and writing about crypto market. She is fascinated by blockchain and cryptocurrencies. In her free time, she researches extensively about cryptocurrency and it's use cases for public.

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