- It is a general goal of the EIP-1559 update to bring fee burning to Polygon.
- According to a Polygon blog post, EIP-1559 went live at block 23850000.
After months of anticipation, Polygon’s layer-two scaling network went live with the much-anticipated EIP-1559 update on January 18.
There was a successful implementation of the Ethereum Improvement Proposal 1559 (also known as the London hardfork), which went live on the Ethereum mainnet in August 2021. According to a Polygon blog post, EIP-1559 went live at block 23850000 following a successful upgrade on the Mumbai testnet.
Deflation of MATIC Tokens
It is a general goal of the EIP-1559 update to bring fee burning to Polygon, which will result in the deflation of MATIC tokens once fee burning begins. It improves cost estimates by doing away with the first-price auction approach of figuring out network fees, but it does not affect the price of gas.
The supply of MATIC is expected to become deflationary in the same way that the ETH supply is being burned, with estimates stating that 0.27 percent of the overall quantity is burned per year. At current adoption levels, 0.27 percent of the $MATIC supply will be burned each year. What happens if the number of Polygon users is multiplied by ten? This was asked via a tweet by popular analyst Lark Davis. Take a look at the tweet.
0.27% of the $matic supply will be burnt every year at the current adoption levels. What happens when we 10X the number of Polygon users?
— Lark Davis (@TheCryptoLark) January 30, 2022
In contrast to Ethereum, MATIC’s token deflationary nature in the future might further enhance supply shock narratives feeding a macro positive narrative for the 13th ranked cryptocurrency by market value since there is a fixed quantity of 10 billion tokens with 6.8 billion now in circulation.
Read More: Polygon Price Prediction
According to CoinMarketCap, the Polygon price today is $1.67 USD with a 24-hour trading volume of $853,715,772 USD.
