Share this article
Polygon has launched EIP-1559. The update will set a base fee for transactions and initiate the real-time burning of MATIC tokens.
EIP-1559 Goes Live on Polygon
Polygon has implemented its own version of Ethereum’s EIP-1559.
The update was activated at block height 23850000 at 2:48 UTC and replaced Polygon’s previous fee system based on a first-price auction.
With EIP-1559 going live, Polygon transactions will now use a base fee—a minimum amount of the network’s MATIC token required for a transaction to be processed immediately on the blockchain. Instead of paying this fee to Polygon validators, as happened previously, the network now burns the base fee of each transaction.
The new gas fee system will only compensate validators with priority fees—tips that users can send along with the transaction base fee to incentivize validators to speed up transactions.
EIP-1559 will help in making Polygon’s fee system more predictable and stable against sudden demand shocks. In a Monday blog post, the Polygon team noted that EIP-1559 would result in fewer spam transactions and lead to less network congestion.
EIP-1559 was launched first on Ethereum as part of the London Hardfork in August of last year. The upgrade adjusts the base fee amount up and down based on how congested the network is, and automatically allows wallets such as MetaMask to set gas fees for transactions.
Besides achieving predictability in gas fees, EIP-1559 created a fundamental shift in Ethereum’s monetary policy by reducing the circulating supply of ETH.
The Polygon team explained in the same blog post that, similar to Ethereum, EIP-1559 will also have a deflationary effect on Polygon due to its fixed supply of 10 billion MATIC tokens. In an analysis, the team found that at the current usage, the EIP-1559 is estimated to burn 0.27% of the total MATIC supply every year.
Disclosure: At the time of writing, the author of this piece owned ETH, MATIC and other cryptocurrencies.
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…