Ethereum’s internet of blockchains, Polygon, has established itself as a leading layer 2 scaling solution with its innovative technology. Polygon’s drive to offer the best layer 2 solution has seen the project announce the deployment of EIP-1559 on its network.
After a month of waiting, Polygon has finally announced that the much-awaited Ethereum Improvement Proposal (EIP) 1559 will go live on the mainnet on January 18 at 8am (UTC).
What Will EIP-1559 Change on Polygon?
First introduced on the Ethereum network via the London Hardfork in August 2021, the EIP-1559 will eliminate the first-price auction as the main gas fee calculation.
People place bids for their transactions on the Polygon network, with the highest bidder winning. The network upgrade will introduce a base fee for all transactions in a block. However, users can add a “tip” to prioritize their transactions.
The upgrades will result in fewer spam transactions and less network congestion. The base fee increases automatically once the block is filled up.
In addition, it will also introduce token burning for MATIC, making it a deflationary asset. Burning refers to the intentional destruction/removal of a token from circulation, thus reducing the amount available to users.
The Polygon team has predicted that MATIC, which has a fixed supply of 10 billion, would be reduced by 0.27% or 27 million MATIC in a year.
On the Flipside
- While EIP-1559 will benefit all of Polygon’s stakeholders, it will reduce the amount of MATIC available to existing and new investors.
Why You Should Care
The EIP-1159 upgrade will ensure dApp users, validators, and delegates on the network pay even lower fees for transactions.