Upgrading Ethereum’s EIP-1559 partial network fee burn mechanism in August last year. It was released on the Layer 2 network like Polygon.
Ethereum’s EIP-1559 upgrade came with the London hard fork last summer. And it was successful in terms of forecasting GAS prices and network fees. The upgrade is now rolling out on the Layer 2 Polygon network to improve “fee visibility” by launching on the block. 23850000
Polygon team announceUpgrade date Jan 17, after successful deployment on the Mumbai testnet network.
Upgrading the EIP-1559 to the Fee Burn Mechanism This will result in a decrease in MATIC tokens. It also removes the first-price auction method of calculating network fees. This leads to better price estimations but not lower gas prices.
“Incineration is a 2-step activity, starting on the Polygon network and finishing on the Ethereum network.”
The team says that, like Ethereum, MATIC’s supply is likely to turn into deflation, with 0.27% of the total supply being burned annually according to estimates. It has a stable supply of 10 billion MATIC tokens and a current circulation of 6.8 billion tokens.
“Defense pressure will benefit both the validator and the delegator as the reward for processing transactions is in MATIC,” the team said, adding that the upgrade will also reduce spam and network congestion.
refer : LINK
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