Polygon Implements EIP-1559 Burn Mechanism for MATIC
Main page News, Ethereum, Blockchain

Polygon, a Layer-2 scaling solution of the Ethereum blockchain network, has rolled out a testnet implementation of EIP-1559 to introduce burning of its native MATIC token. The company said in a blog post that the upgrade will eventually will have a deflationary effect.

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"We took Ethereum's experience since the upgrade as the baseline to simulate the potential impact on MATIC’s total supply," the announcement says.

The protocol developers also claim dApp users and blockchain developers will benefit with the upgrade as there will be more predictable gas prices. However, there will also be the downsides, including fewer MATIC tokens available as the burn and a gas fee curve more similar to that of Ethereum, the developers note.

The Polygon team notes that deflationary pressure will benefit both validators and delegators as their rewards for processing transactions are denominated in MATIC. The changes will reportedly result in fewer spam transactions and lead to less network congestion.

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As iHodl earlier reported, EIP-1559 changes the principles of adding new transactions to the network and, as a result, reduces the amount of miners' earnings. Now it is not users who choose fees when sending transactions, but the network itself sets them based on the size of the previous block.

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