Polygon Activates EIP-1559 Hardfork – Crypto Briefing

Share this article

Polygon has launched EIP-1559 to initiate the real-time burning of MATIC tokens.

EIP-1559 Goes Live on Polygon

Ethereum sidechain network, Polygon has initiated EIP-1559, also called “London Hardfork.”

The update was activated at block height 23850000 at 2:48 am UTC. It replaces Polygon’s previous fee system based on “first-price auction.”

With EIP-1559 going live, Polygon transactions will use base fee–an estimated amount of fee need for a transaction to be accepted for the next blocks.

EIP-1559 makes the network fee system more predictable and stable against demand shocks. The base fee amount is adjusted up and down by the protocol based on how congested the network is. This also allows Web3 wallets to automatically adjust the gas fees for users in a reliable manner. 

Instead of paying fee to its validators, EIP-1559 enforces each transaction to burn the base fee paid in MATIC token. Furthermore, the new fee system compensates validators with “priority fee” acting as an incentive to speed up transactions.

EIP-1559 was launched first on Ethereum as part of the network’s London hardfork in August of last year.

In a Monday blog post, the Polygon team hopes EIP-1559 will result in fewer spam transactions and lead to less network congestion.

Besides achieving predictability in gas fees, EIP-1559 led to a fundamental shift in ETH’s monetary policy. The Ethereum gas fee burning mechanism has had a significant effect on reducing the circulating supply of Ether.

The Polygon team said that similar to Ethereum, EIP-1559 may also have a deflationary effect on MATIC due to its fixed token supply of 10 billion tokens. In an analysis, the team found that the EIP-1559 is estimated to burn 0.27% of the total MATIC supply in a span of one year.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Binance Smart Chain May Clone Ethereum’s EIP-1559 Update

Binance Smart Chain is looking to replicate Ethereum’s gas fee burning mechanism. If introduced, the BEP-90 gas fee proposal will add more deflationary pressure on BNB, in addition to the…

Web3 – What it is, What it Means, and How We’ll Transition

We are at the dawn of a new era of the internet. Bit by bit, this new digital world, and all that it enables, will slowly become a part of…

How Polygon and xDai Will Adopt EIP-1559

To maintain their compatibility with Ethereum, Polygon and xDai have also planned to implement the fee burning proposal used in EIP-1559 on their own networks. EIP-1559 on Sidechains Ethereum shipped…

800,000 ETH Burned Since EIP-1559

The Ethereum blockchain has burned around $3.8 billion worth of Ether (more than 800,000 ETH) since the implementation of EIP-1559, which has likely contributed to the ongoing rally for the…