Polygon is trying to bring the native Ethereum Layer-1 experience to its platform by bringing the EIP 1559.
Popular Ethereum layer-2 scaling solution, Polygon has finally announced the date for its upgrade to the Ethereum Improvement Proposal (EIP) 1559.
The project had declared its wish to have deflationary tokenomics for its blockchain last month.
Polygon is aiming to provide the native Ethereum Layer-1 like experience by bringing the EIP 1559.
Its native token MATIC has a fixed supply of 10 billion. Annually, 0.27% of the supply will be burned. Thus, it would become deflationary driving up MATIC’s price. At the moment, MATIC is trading for 2.39 USDT on Binance. In the coming days, the price could increase.
The upgrade will activate on block 23850000 which will be mined on January 18.
In December 2021, Polygon had launched the update on the Mumbai Testnet.
The EIP 1559 was rolled out on August 5. It brought a host of changes like fixed gas, burning Ether, and flexible block size. It abolished the gas fee auction mechanism with a fixed base fee for a given block. This has not decreased Ethereum’s gas fees but has made it predictable.
Having a fixed supply with deflationary tokenomics would not only benefit token holders but also Decentralized Application (DApp) developers as their transaction costs would become predictable.
In traditional economics, countries usually see the value of their currencies decrease due to inflation. But the crypto-verse is experimenting with new economic models. Today, a crypto product can be used as a currency, asset, or token for internal transactions on a blockchain.
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