HomeCrypto NewsAltcoinPolygon officially activates EIP-1559

Polygon officially activates EIP-1559

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Polygon officially activates EIP-1559

Polygon, a layer-2 scaling solution on the Ethereum blockchain network, has officially launched the upgrade EIP-1559 to start burning MATIC in real time.

Polygon enabled EIP-1559, the update was run at block height 23850000 at 2:48 am UTC, 11 am Vietnam time.

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EIP-1559 will replace Polygon's previous fee system based on a "first-price auction".

With the EIP-1559 going live, Polygon transactions will use a base fee – a minimal fee required for the transaction to be processed instantly on the Blockchain. Instead of paying this fee to validators, EIP-1559 will burn the base fee in each transaction paid with MATIC tokens.

EIP-1559 can help make Polygon's fee system more predictable and resilient to demand shocks. In a blog post on January 17, the Polygon development team noted that “EIP-1 will help reduce spam transactions, thereby leading to less network congestion.”

EIP-1559 was first launched on Ethereum as the London Hardfork last August. In the update, the base fee is adjusted up and down based on network congestion, in addition to allowing Web8 wallets to reliably set gas fees for users automatically.

Besides gaining predictability on gas fees, EIP-1559 also creates a fundamental shift in Ethereum by reducing the circulating supply of ETH.

The Polygon development team said: “EIP-1559 will have the same impact on MATIC as Ethereum. The upgrade could also have a deflationary effect on MATIC.”

A recent report on Cryptobriefing states: “EIP-1559 is estimated to burn 0.27% of the total MATIC supply over a one-year period.”

See more: What is EIP 1559? Impact of EIP 1559 on Ethereum

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