Polygon(MATIC) Bringing EIP-1559 Upgrades to Its Network

Details

Polygon\u2019s core development team is rolling out a testnet implementation of Ethereum Improvement Proposal 1559 to introduce burning of its native MATIC token and better fee visibility. Known as the London fork, EIP-1559 went live on Ethereum mainnet on Aug. 5 and was one of the biggest changes in its history. After extensive discussions with and input from the community, Polygon is taking steps to bring this much-requested upgrade to our network. It went live on the Mumbai testnet on Dec. 14, at 8 a.m. UTC.EIP-1559 gets rid of first-price auction as the main mechanism for fee calculation. Instead, there is a discrete base fee for transactions to be included in the next block and a priority fee to speed up processing. The base fee, which fluctuates depending on network congestion, is then burned. The changes do not lower the fees paid for transactions, since gas prices are determined by supply and demand. They do allow users to better estimate costs since the base fee is the minimum price for inclusion in the next block. This will result in fewer users overpaying.Polygon\u2019s MATIC has a fixed supply of 10 billion, so any reduction in the number of available tokens will have a deflationary effect. The analysis suggests that annualized burn would represent 0.27% of the total MATIC supply. Users of decentralized apps (dApps) on Polygon, will benefit from more predictable gas prices. Deflationary pressure will benefit both validators and delegators because their rewards for processing transactions are denominated in MATIC. Because the base fee increases automatically if the block is full, the changes will result in fewer spam transactions and lead to less network congestion. Validators, who now receive the total amount of the fees, will be getting only the priority fee in the future.

Name

Polygon Is Bringing EIP-1559 Upgrades to Its Network With a Testnet Release

Date

2021-12-14

Accomplished

Yes