Polygon Launches Much Anticipated Ethereum EIP-1599 Update

Polygon Launches Much Anticipated Ethereum EIP-1599 Update
  • Network fees are no longer calculated using the first-price auction approach.
  • Polygon has lately had a gas crisis of its own.

The Polygon team forecasts that MATIC’s supply will become deflationary when fee burning begins. Polygon, a layer-two scaling network, has implemented the Ethereum update that included a fee-burning mechanism in August of last year.

With its London hard fork last summer, the Ethereum Improvement Proposal (EIP) 1559 update was released and has been a success in terms of gas price predictability and network fee burning. Polygon has recently included a new “fee visibility” feature as part of the update. It is now live at block 23,850,000.

Fee-burning Mechanism

Post-Mumbai testnet deployment, Polygon released an update announcement on Monday. EIP-1559 brings the same fee-burning mechanism to Polygon, which destroys MATIC tokens. Network fees are no longer calculated using the first-price auction approach, which improves cost estimates but does not affect gas prices.

Read More: Polygon Price Prediction

Like that of Ethereum, MATIC’s supply is expected to become deflationary shortly, with annual burn rates estimated at 0.27 percent of the total supply. There are 10 billion MATIC tokens in circulation, with 6.8 billion of them already in use.

Read More: Ethereum Price Prediction

Although being a layer-two network, Polygon has lately had a gas crisis of its own. According to Dune Analytics, polygon gas expenses surged earlier this month, causing some validators not to submit blocks. According to Ultrasound.money, 1.54 million ETH have been burned since the update went live on Ethereum almost six months ago. This calculates out to about $5 billion at current ETH pricing.

A devoted content writer having 3 years of crypto trading experience. Loves cooking and swimming. Stays up to date with the latest developments on blockchain technology.