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The Ethereum upgrade, which introduced a partial network fee burning mechanism last August, has been launched on the second layer scaling network Polygon.
Last summer, Ethereum’s EIP-1559 upgrade was delivered with its London hard fork and has been successful in gas price predictability and network fee burn. Upgrades are now live on Polygon, the second-tier extension network, to improve “fee visibility.”went live on the block about an hour ago 23850000.
Polygon Team Announce After a successful deployment on the Mumbai testnet, the upgrade date is January 17th.
The EIP-1559 upgrade introduced the same fee burning mechanism to Polygon, resulting in the burn of MATIC tokens. It also does away with the first-price auction method of calculating network fees, which provides a better estimate of costs but does not reduce gas prices.
“Burn is a two-step thing, starting on the Polygon network and finishing on the Ethereum network.”
The team said that, like Ethereum, MATIC’s supply is likely to be deflationary, with an estimated 0.27% of the total supply being burned annually. The fixed supply of MATIC tokens is 10 billion, and there are currently 6.8 billion tokens in circulation.
“Deflationary pressure will benefit both validators and delegators as their rewards for processing transactions are denominated in MATIC,” it added, before noting that the upgrade will also reduce spam and network congestion.
Despite being a Layer 2 network, Polygon has recently suffered its own gas crisis.Earlier this month, Polygon’s gas bills soared, according to Dune analyze Caused some validators to fail to submit blocks. The surge in demand came as a DeFi yield farming game called Sunflower Land rewarded early adopters before degens lost interest.
related: Here’s how Polygon challenges Ethereum’s limitations
Since going live on Ethereum about six months ago, the upgrade has resulted in a burn of 1.54 million ETH to date, according to the burn Tracker. At current ETH prices, this is roughly $5 billion. The tracker also predicts that once the “merger” happens and proof-of-stake becomes the network’s primary consensus mechanism, ethereum issuance will decrease by -2.5% per year.
At the time of writing, MATIC prices were down 9% on the day to $2.22. Coin Tiger.
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