Scalability solution for Ethereum Polygon has announced the launch of a testnet implementation of Ethereum Proposal 1559 in order to bring a burning mechanism to its network.
According to the developers, the purpose of this implementation is to burn Polygon’s native MATIC token, with an annualised burn of 0.27 percent of the entire MATIC supply, as well as to improve fee visibility.
According to Dune Analytics, 1.18 million ETH worth $4.6 billion have been burned since EIP 1559 went live on Ethereum mainnet with the London hard fork on August 5th. Uniswap (v2+v3) accounts for the most Ether burned, with almost 150k ETH burned, followed by Opensea, Ether transfers, USDT, MetaMask, USDC, Axie Infinity (AXS), and SushiSwap (SUSHI).
Due to increasing amounts of Ether being burned during periods of high fees, ETH issuance has been steadily declining, making it a deflationary asset.
Polygon now wants to apply the same process to its chain, calling it a “much-requested” network improvement.
The upgrade went live on the Mumbai testnet on December 14th, at 8 a.m. UTC.
There is a distinct basic charge for transactions to be included in the next block and a priority fee to speed up processing under the scheme. The base cost, which varies according to network congestion, is consumed.
As per Polygon, this will help players better predict expenses because the basic fee is the minimum price for inclusion in the following block. Users of Dapps developed on Polygon’s network, according to Polygon, will benefit from more predictable gas pricing.
“These changes have far-reaching implications for all of Polygon’s stakeholders,” said the team.
The team stated in its release that Polygon has a fixed quantity of 10 billion MATIC and that any decrease in its tokens will have a “deflationary effect.” Because awards are denominated in MATIC, this deflationary pressure is projected to benefit both validators and delegators.
Because of the basic fee burn process, there will be fewer spam transactions and less network congestion. Validators, on the other hand, would no longer receive the entire fee but only the priority fee in the future