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Following the initiative of Ethereum and Binance Smart Chain to add a token-burning mechanism to their networks, the idea was taken up by Polygon, intending to produce a deflationary effect for the MATIC coin.
According to an announcement posted on December 14, the Polygon developers (MATIC) have announced that they are testing the EIP-1559 engine on the project’s testnet for early deployment on the main blockchain.
Technical Details of Polygon Combustion (MATIC)
Polygon’s EIP-1559 proposal will be more or less related to the EIP-1559 update, which was rolled out from the London fork of Ethereum in early August. EIP-1559 is an option that allows you to limit peak gas tariffs in Ethereum.
In particular, EIP-1559 will set the regular pricecalled BASE Charge, which applies to the entire network, instead of letting customers set their desired price, which is the main factor behind soaring transaction prices.
However, customers can still pay an additional fee, which may speed up the transaction, but will not result in a corresponding increase in the base fee.
More importantly, the entire BASE SHARE will be burned, which will create a deflationary burden on the selling price of ETH. At the end of November, almost four months after implementation, Ethereum hit the one million ETH burned thanks to EIP-1559, worth $ 28 billion at the time. These numbers demonstrate the significant deflationary impact that the alleged burnout could have on the second largest cryptocurrency network on the planet.
Seeing the constructive impact that EIP-1559 is having, yet another network, Binance Smart Chain, also implemented a BEP-95 proposal to burn ten percent of BNB used as transaction fees at the end of November.
Likewise, the Polygon developers have stated that they have already started testing for further EIP-1559 deployment on your blockchain. Polygon estimates the asset offering could allow the network to burn 0.27% of the total volume of coins per year.
Polygon is confident that all network participants, from MATIC owners, dApp customers and developers, as well as transaction validators, will benefit from the EIP-1559. This proposal will stabilize Polygon’s currently particularly low gas tariffs and will also benefit from the deflationary impact on MATIC charges.
EIP-1559 already deployed by Polygon on the project testnet in Mumbaibut it is unclear when it will be integrated into the mainnet.
However, the above information did not have much of an impact on the MATIC price. The coin has gained nearly 3.5 percent over the past 24 hours, but is still trading down 17.6 percent over the past week.
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