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Polygon has launched EIP-1559. The update will set a base fee for transactions and initiate the real-time burning of MATIC tokens.
EIP-1559 Goes Live on Polygon
Polygon has implemented its own version of Ethereum’s EIP-1559.
The update was activated at block height 23850000 at 2:48 am UTC and replaced Polygon’s previous fee system based on a first-price auction.
With EIP-1559 going live, Polygon transactions will now use a base fee—a minimum amount of the network’s MATIC token required for a transaction to be processed immediately on the blockchain. Instead of paying this fee to Polygon validators, as happened previously, the network now burns the base fee of each transaction.
The new gas fee system will only compensate validators with priority fees—tips that users can send along with the transaction base fee to incentivize validators to speed up transactions.
EIP-1559 will help in making Polygon’s fee system more predictable and stable against sudden demand shocks. In a Monday blog post, the Polygon team noted that EIP-1559 would result in fewer spam transactions and lead to less network congestion.
EIP-1559 was launched first on Ethereum as part of the London Hardfork in August of last year. The upgrade adjusts the base fee amount up and down based on how congested the network is, and automatically allows wallets such as MetaMask to set gas fees for transactions.
Besides achieving predictability in gas fees, EIP-1559 created a fundamental shift in Ethereum’s monetary policy by reducing the circulating supply of ETH.
The Polygon team explained in the same blog post that, similar to Ethereum, EIP-1559 will also have a deflationary effect on Polygon due to its fixed supply of 10 billion MATIC tokens. In an analysis, the team found that at the current usage, the EIP-1559 is estimated to burn 0.27% of the total MATIC supply every year.
Disclosure: At the time of writing, the author of this piece owned ETH, MATIC and other cryptocurrencies.
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