Friday, May 20, 2022
Home Crypto News Market Polygon Finally Launching Much Anticipated EIP1559 Upgrade That Will Activate Real-Time Matic...

Polygon Finally Launching Much Anticipated EIP1559 Upgrade That Will Activate Real-Time Matic Burning

- Advertisement -
Follow-Us-On-Google-News

Polygon (MATIC) is launching the EIP 1559 upgrade.



Activation of EIP1559 will introduce real-time burning of Polygon’s native token MATIC. On Dec 14th the developers of the Polygon first announced that they will deploy a fee-burning mechanism, like BNB and ETH.

After the successful rollout of EIP1559 on Mumbai Testnet last month, Polygon now has a block number for London Hardfork on Mainnet. Polygon will hit the London Block, where the EIP1559 and related EIPs will be activated on the Mainnet around 8 AM UTC on Jan 18th, 2022.

Polygon tweeted, 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 Jan 18th around 3 AM ET / 8 AM UTC.”

 

EIP 1559 aims to change the fee market mechanism. The upgrade eliminates the first-price auction as the main gas fee calculation.

In first-price auctions, people bid a set amount of money to pay for their transaction to be processed, and the highest bidder wins. With EIP-1559, there will be a discrete “base fee” for transactions to be included in the next block. Users who want to prioritize their transaction can “tip,” which is called a “priority fee,” to pay a miner for faster inclusion.

Although this upgrade will not help reduce transaction fees, it aids in decreasing the number of users that are overpaying and make users better estimate their costs.

The introduction of the EIP-1559 upgrade will help Matic become a deflationary asset that will have a broad effect on the Polygon community, including holders, validators, delegators, and developers.

Polygon’s MATIC has a fixed supply of 10 billion, so any reduction in available tokens will have a deflationary effect. Polygon team took Ethereum’s experience since the upgrade as the baseline to simulate the potential impact on MATIC’s total supply. The analysis conducted by the team shows that annualized burns would destroy 27 million MATIC in a year.

- Advertisement -

Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Bill Gates Says He Is Not Invested In Crypto Because It is Valueless to Society 

The former world's richest person does not have any love for crypto. Bill Gates, the co-founder of popular tech company Microsoft disclosed that he does...

Binance CEO Says UST and LUNA Crash Could Have Been Avoided If Terra Used Its Bitcoin Reserve Earlier 

CZ is still not happy with the way Terra handled last week’s situation as he believes the crash could have been avoided if the...

Tether CTO: LUNA And UST Were Flawed In Design But Not A Rug Pull

The team at Terra has been struggling to save LUNA and UST after a sudden crash that sent the price of LUNA spilling down...

Two Major Indicators Suggest Bitcoin (BTC) Possible Price Rebound Above $35,000 

There is a likelihood that Bitcoin's price will rebound soon as it currently sits around major support levels.   Following last week’s market turmoil that...

Majority Of Terra Community Wants New Luna Chain Without UST

The Terra community has been deliberating on the way forward after the crypto lost over 95% of its ATH value. Many in the crypto...

Can Crypto Payments Finally Take Off?

Helio, the Web3 payments company, launched its beta this week to offer a much-needed path for faster adoption of crypto payments. Its complete Web3...

Terra Amends Terra 2.0 Proposal To Accommodate Community Feedback

A few days ago, the Terra team, led by Do Kwon, made a proposal to the community to fork LUNA and create a new...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.