The much-anticipated Ethereum Improvement Proposal (EIP) 1559 upgrade or London Hardfork will be live on the mainnet next week, according to Polygon, the leading Ethereum layer-2 scaling solution.
London HardFork is About to go Live on Polygon.
The India-based project said in an official announcement on Wednesday that the upgrade, which will start the burning of MATIC, will go live on the mainnet on January 18, 2022, at around 8 a.m. UTC.
The EIP-1559 update, often known as the London hardfork, radically changes how the Ethereum network’s fee market operates. It does away with the first-price auction as the primary method of calculating fees and replaces it with a discrete base charge that is burnt rather than paid to miners.
While this move does not reduce transaction fees, which are determined by market forces, it does help consumers to predict prices better and reduce the number of customers who overpay. These modifications, on the other hand, will have far-reaching implications for all Polygon stakeholders, including MATIC holders, validators and delegators, dApp developers, and users.
Deflationary Effect on MATIC
Because MATIC has a fixed quantity of 10 billion tokens, any decrease in the number of coins accessible will deflate the asset.
According to the project’s core team, an annual MATIC burn would account for 0.27 percent of the token’s entire supply or around 27 million MATIC.
The EIP-1559 upgrade will provide even more benefits to dApp users on the network, such as cheaper prices. There will, however, be fewer MATIC tokens accessible. Developers, on the other hand, will benefit from the fact that all of their Ethereum tools will run smoothly with no side effects. Validators and delegates will profit from the deflationary pressure because their rewards for executing transactions on the Polygon network are in MATIC.
Additionally, because the base cost increases automatically once the block is filled, the modifications will result in fewer spam transactions and less network congestion.