BlocksInform
The Ethereum upgrade that introduced a partial network fee burning mechanism in August last year launched on the Polygone two-tier network.
The ethereum eip-1559 upgrade shipped with its fork in London last summer was a success in terms of predictability of gas prices and combustion of network costs. The upgrade has now been launched on the Tier Two Network Scaling Polygon to improve "cost visibility". It went live about an hour ago at block 23850000.
The Polygon team announced the upgrade date on Jan. Seventeen, after his successful deployment to the mumbai testnet.
The eip-1559 upgrade introduces the same fee burning mechanism into the polygon, resulting in the destruction of the hardware tokens. It also removes the first-price auction method for calculating network fees, which allows for better cost estimates but does not reduce gas prices.
"Combustion is a two-stage affair which starts on the polygon network and ends on the ethereum network."
The team stated that, just like Ethereum, the supply of matter is likely to become deflationary with 0.27% of the total supply being burned every year according to estimates. There is a fixed offer of 10 billion matic chips with 6.8 billion in circulation today.
“Deflationary pressure will benefit both validators and delegators because their rewards for processing transactions are denominated in MATIC,” it added before stating that the upgrade would also reduce spam and network congestion.
Although this is a second level network, the polygon has recently suffered from its own gas crisis. Earlier this month, Polygon gas fees skyrocketed according to Dune Analytics resulting in some validators failing to submit blocks. The increase in demand was due to a challenging farm game called sunflower that rewarded early adopters before degenerates lost interest.
Related: Here's how Polygon is challenging the limitations of Ethereum
Since going live on Ethereum around six months ago, the upgrade has resulted in the burning of 1.54 million ETH to date according to the burn tracker. At current prices, this works out to about $5 billion. The tracker also predicts that ethereum emission will become deflationary by -2.5% per year once the "merger" takes place and proof of interest becomes the main consensus mechanism for the network.
MATIC prices have dumped 9% on the day in a fall to $2.22 at the time of writing according to CoinGecko.
