The Update Brings In A Real-Time MATIC Burning Mechanism

Polygon (ex-MATIC) is finally going to implement the London hard fork, or EIP-1559, after developers announced that they will deploy a fee-burning mechanism, like BNB and ETH, on December 14, 2021.

Last month, the EIP-1559 network update was successfully implemented on Polygon’s Mumbai Testnet, and now the network is ready to undergo the hard fork, scheduled for block 23,850,000.

“After the successful EIP-1559 upgrade on Mumbai Testnet last year, the much-awaited London Hardfork on Mainnet is here! EIP1559 and related EIPs will be activated on the Mainnet on Jan 18th around 3 AM ET / 8 AM UTC.” Polygon tweeted, explaining the technical requirements for updating the clients.

The core purpose of EIP-1559 is to change the fee market mechanism, which eliminates the first-price auction as the main gas fee calculation.

The first-price auctions imply that users bid a set amount of money to pay for their transaction processing, and the highest bidder wins. EIP-1559 introduces a “base fee” for transactions to be included in the next block.

However, users still can bid, in what is called a “priority fee”, which pays miners for faster transaction times.

The network update will not reduce transaction fees, but the number of users that are overpaying would decrease, while EIP-1559 would also make users better estimate their costs.

Furthermore, the EIP-1559 upgrade will help Matic become a deflationary asset, just like its big brother, Ethereum.

That deflationary status will have a broad effect on the Polygon community, which affects holders, validators, delegators, and developers.

Shortly after the announcement, Polygon’s MATIC token spiked, recording a weekly high of $2.45 per token. However, its price is still far from its all-time high of $2.92, recorded on December 27.

MATICUSD_2022-01-17_17-27-19Source: TradingView

Many MATIC proponents claimed a pump is imminent, claiming the increased interest as a sole driving factor behind MATIC’s price.

Meanwhile, the rest of the crypto sector is showing a negative price trend. Bitcoin, Ethereum, and Binance Coin all recorded negative price actions, with many of the top-100 projects recording 1%-5% negative slide on the day.

Ethereum cryptocurrency news crypto news Crypto Price Hard Fork Polygon

Cookie Policy uses cookies to enhance your experience. By continuing without changing your settings, you agree to this use. To provide the best blockchain and crypto media on the web for free, we also request your permission for our partners and us to use cookies to personalize ads. To allow this, please click "OK". Need more info? Take a look at our Cookie Policy.

OK Cookie Policy