In August 2021, a hard fork called London was implemented on the Ethereum blockchain. Every second layer built on the blockchain can carry these hard fork improvements. This is exactly what Polygon (MATIC) did.
Less and less matic
Polygon is a second layer on top of the Ethereum blockchain. The goal is to help the Ethereum network take over trades on its own “sidechain”.
Like Ethereum, Polygon is now also using EIP-1559, one of the improvement proposals attached with hard fork has been made. This means that with each transaction, a small amount of matic (Polygon cipher) is taken out of circulation.
Transactions have a base rate
Update activated at block height 23.850000 at 01:45 AM tonight to replace Polygon’s previous First Prize Auction fee system.
With the launch of the EIP-1559, Polygon deals will have a base rate. This is the minimum amount required to process a transaction instantly on the blockchain.
Instead of paying this fee to Polygon’s validators, the EIP-1559 burns out the base fee on every transaction. Hence, this basic fee consists of the cryptocurrency.
The new system will compensate auditors for their lost revenue. There is now a kind of priority fee, which acts as an incentive for ordinary users to speed up transactions.
And so EIP-1559 was launched on Ethereum in August of last year, as part of the London Hard fork. In this system, the base amount is set up and down based on how busy the network is. The protocol also enables Web3 wallets to reliably assign gas rates to users automatically.
Transaction costs become predictable
This (unfortunately) does not mean that transaction costs will decrease, but it does mean that they are more transparent and can be viewed up front. This also helps with the scarcity of ether and matec, as more and more of them are taken out of circulation.
EIP-1559 can help make Polygon’s pricing system more predictable and more stable in the face of extreme fluctuations in demand. yesterday books The Polygon team hope that the EIP-1559 will lead to fewer spam transactions and less network congestion.
The Polygon team explained in the same post that EIP-1559, similar to Ethereum, could also have a deflationary effect on the cryptocurrency. In fact, there is a stable supply of 10 billion tokens and it is estimated that within a year, 0.27% of Matic’s total stock will be taken out of circulation.
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