- EIP-1559 may stabilize it in the face of demand shocks.
- EIP-1559 will reduce spam transactions and relieve network congestion.
MATIC tokens may now be burned in real-time thanks to EIP-1559, which Polygon has implemented. Ethereum sidechain network, Polygon has launched EIP-1559 or the “London Hardfork.” At 2:48 a.m. UTC, the new fee system was triggered at block height 23850000, replacing Polygon’s prior “first-price auction” charge scheme.
Polygon transactions will now utilize the basic fee, which is the least amount of money needed to conduct a blockchain transaction instantly. EIP-1559 uses the native MATIC token to burn the base fee instead of sending it to Polygon validators.
Validators are compensated with a “priority fee” under the new gas charge scheme, encouraging them to expedite transactions. In August of last year, the London Hardfork of EIP-1559 was the first to be released on Ethereum. Fees under this system are dynamically scaled, dependent on network congestion levels. Also, Web3 wallets may utilize the protocol to automatically determine the gas prices for their customers in a trustworthy way.
When it comes to Polygon’s pricing structure, EIP-1559 may stabilize it in the face of demand shocks. In a blog post published on Monday, the Polygon team expressed confidence that EIP-1559 will reduce spam transactions and relieve network congestion.
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EIP-1559 reduced the number of Ethereum (ETH) in circulation and stabilized gas costs. This had a significant impact on Ethereum’s monetary policy. According to the Polygon team, MATIC’s fixed token supply of 10 billion tokens may have a deflationary impact comparable to Ethereum’s EIP-1559. The new update is anticipated to burn 0.27 percent of the overall MATIC supply in a year, according to the team’s study.