Polygon has scheduled the EIP-1559 network upgrade for next week and has initiated the MATIC token burning with the latest upgrade. So let’s read more in today’s altcoin news.
Leading Ethereum Layer 2 scaling solution, Polygon, announced that the long-awaited Ethereum improvement proposal EIP-1559 upgrade will go live next week. In the official announcement, the project stated that the upgrade, which will initiate the burning of the MATIC tokens, will go live on the mainnet on January 18, 2022 at 8 a.m. UTC. The EIP-1559 upgrade known as London Hardfork can revolutionize the way the free market works on the Ethereum network. It eliminates the first price auction as the main mechanism for fee calculation and also introduces a discreet base fee that is burned and not paid to the miners.
While the change does not reduce transaction fees, which are determined by supply and demand, it does allow users to better estimate costs and reduce the number of users who overpay. These changes will have far-reaching implications for everyone involved in Polygon, including the native MATIC token holders, delegators, Dapp developers, validators and users. Polygon has scheduled the upgrade for next week and since MATIC has a firm supply of 10 billion tokens, any reduction in coins will have a deflationary effect on the asset.
The core team of the project determined that the analysis, completed with an annual consumption of MATIC, will account for 0.27% of the supply of the token, or about 27 million MATIC. For the Dapp users on the network, the EIP-1559 upgrade will increase the benefits of lower fees. However, fewer MATIC tokens will be available and the developers, on the other hand, will get a boost from ETH tools and will work seamlessly with minimal negative impact. Deflationary pressures will benefit both delegates and validators as their rewards for processing transactions are denominated in MATIC. The changes lead to fewer spam transactions and less network congestion, as the basic fee increases automatically when filling up. Meanwhile, Polygon has also discovered and fixed a bug that would have put over $ 24 billion worth of tokens at risk.
As recently reported, NFT sales on the Polygon network hit an all-time high of just under 2 million last month. According to Dune Analytics, that represents a 60% increase from November and the third straight monthly increase for the network. The ecosystem of Polygon, an Ethereum-based scaling solution that seeks to build and manage securities on the blockchain technology, has grown exponentially over the past 12 months and has more than 3000 decentralized applications on the network with a total value of 3.86 billion US dollars registered.
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