(Polygon) Polygon, an Ethereum layer-2 scaling solution, has launched EIP-1559, dubbed the London Hardfork, welcoming a real-time burning of its native token MATIC.
The EIP-1559 will eliminate the first-price auction as the primary mechanism for calculating fees, giving way for a discrete base fee for transactions and a priority fee for faster processing.
The base fee, which depends on the congestion on the network, is then burned in a two-step process. The burning begins on the Polygon network and then finishes on the Ethereum network.
Under the new upgrade, users can monitor and participate in the burning process via a public interface created by the Polygon team.
Polygon says EIP-1559 changes will not cut the transaction fees since gas prices depend on supply and demand.
The layer-2 scaling network says users can now estimate costs based on the base fee, lowering the chances of overpaying and spam transactions. The network also expects the upgrade to lead to less network congestion.
Polygon says that annualized burn will account for 0.27% of the total supply of the MATIC tokens, which are currently capped at 10 billion. The network expects the reduction to have a deflationary effect on the tokens.
MATIC/USD is down 2.14%.
