The Ethereum update that integrates a gas fee burn protocol has now been adapted to the Polygon layer-2 network. The layer-2 scaling network protocol launched the Ether upgrade on Tuesday.
The Ethereum fee burn mechanism was codenamed EIP 1559. EIP in the code name stands for Ethereum Improvement Proposal, the upgrade launched for the first time on the Ether blockchain in August last year.
The launch of EIP 1559 was a major success in the crypto industry, the update saw standard utility in the gas fees predictions sector as other non-Ether networks continue to adapt the technology.
Polygon Adapts The EIP-1559 Upgrade
Polygon network has now adapted the EIP 1559 tech to its proprietary Blockchain, leveraging the performance of the Ether network.
The platform has upgraded its network protocols to integrate the EIP-1559 update in a bid to regulate transaction fees and improve fee visibility.
This development came in an announcement by the Polygon Team on Monday. The team utilized mainstream media and Twitter to announce the launch of the upgrade. Polygon tweeted that the EIP upgrade will field a constant burn of its MATIC token per network transaction and improve fee visibility on the network.
Polygon’s EIP 1559 upgrade mirrors the Ether network’s upgrade that fades out the relevance of the first price auction protocol in which the highest bidder takes priority on the network. Polygon’s EIP upgrade differs from the Ether network upgrade in that it burns its MATIC tokens are first burnt on Polygon and subsequently finalized of Ethereum.
The addition of the EIP 1559 upgrade on the Polygon’s mainet update will see the deflation of MATIC tokens across all networks and a successful reduction in the supply of the token, effectively increasing the crypto’s intrinsic value.
The upgrade launched at block 23,850,000 in the network in the early hours of Tuesday. The update will see to the efficient and long-term burn of MATIC tokens. The update will immediately phase out base transaction fees and auctioning privileges to integrate a new system of miners’ priority payments for faster transaction speed.
In the new mainet framework, the base transaction fee is burned out of circulation instead of the mainstream payment to miners.
The upgrade launch on Tuesday was successful by all accounts, optimistic sentiments that project MATIC price boom in the industry is now widely spread.
The EIP 1559 Impact On MATIC Price Action
Polygon has a fixed supply of 10 billion tokens with about 6.8 billion in circulation. Polygon projects a 0.27% annual burn of MATIC tokens.
As of press time, MATIC’s price has dropped by approximately 7.7% in the last 24 hours. This price action doesn’t reflect the optimism traders and investors in the industry, however, analysts have stated that the upgrade’s domino effect muggy take longer periods to impact the token’s price value.
The fixed supply of tokens that is unique to MATIC had ensured that the reduction in the supply of MATIC will result in a deflationary effect that will, in turn, boost its price value in the long run
MATIC is currently ranked 15th by market capitalization according to Coinmarketcap. As of press time, it trades at $2.04.