Polygon has confirmed that it is launching the EIP1559 upgrade. The activation of this upgrade is set to introduce real-time burning of Polygon’s native token MATIC. On December 14, the developers of the Polygon first said that they want to deploy a fee-burning mechanism like ETH and BNB.
After a successful unleashing of EIP1559 on Mumbai Testnet in December 2021, Polygon now has a block number for London Hardfork on Mainnet. The team confirmed that Polygon will hit the London Block, where the EIP1559 and related EIPs will get activated on the Mainnet at nearly 8 AM UTC on January 18, 2022.
The firm tweeted:
“After the successful EIP1559 upgrade on Mumbai Testnet last year, the much-awaited London Hardfork on Mainnet is here! EIP1559 and related EIPs will be activated on the Mainnet on Jan 18th around 3 AM ET / 8 AM UTC.”
After the successful EIP-1559 upgrade on Mumbai Testnet last year, the much-awaited London Hardfork on Mainnet is here!#EIP1559 and related EIPs will be activated on the Mainnet on 18th Jan around 3 AM ET / 8 AM UTC.
Find out more: https://t.co/TgZQtbCO98 https://t.co/dZ97nTUNTO
— Polygon | Aggregated (@0xPolygon) January 11, 2022
EIP 1559 strives to change the fee market mechanism. The upgrade gets rid of the first-price auction as the main gas fee calculation. In the case of the first-price auctions, people bid a specific amount of money to cater for their transaction processing, and the highest bidder wins.
Buy Crypto NowEIP1559 Has Many Benefits
With EIP-1559, there is a discrete ‘base fee’ for the transactions to be featured in the next block. The users who wish to prioritize their transactions may ‘tip’ what is known as a ‘priority fee’ to pay the miners for quicker inclusion.
This upgrade is not meant to help in the reduction of transaction fees. It helps in reducing the number of users that are currently overpaying and makes the users estimate their costs much better. Experts say that the introduction of the EIP1559 upgrade will help Matic become a gradually deflationary asset that will have a significant effect on the Polygon community, including delegators, holders, validators, and developers.
Polygon’s MATIC has a fixed supply of 10 billion, so any drop and reduction of the number of available tokens have a deflationary effect. The Polygon developers took Ethereum’s experience since the upgrade as the baseline meant to simulate the possible impact on MATIC’s total supply. The research done by the team shows that the yearly burns would manage to destroy 27 million MATIC per year.
