Polygon implements new update that introduces burning system for the MATIC token – DiarioBitcoin

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Polygon implements new update that introduces burning system for the MATIC token - DiarioBitcoin For Angel Di Matteo @shadowargel

The new update for polygonal derives from EIP-1559 implemented in the network ethereum in August 2021. This is expected to have a positive impact as it introduces deflationary properties.

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The project that appears as a second layer solution to address the scalability problems in the network of Ethereum, Polygon, announced the implementation of EIP-1559 in its network, with which it started a dynamic for the burning of tokens MATIC which incorporates deflationary properties for the digital currency.

polygonal implements system for burning MATIC

According to information published by the development team, the incorporation of the EIP-1559 originally contemplated for the network of ethereum brought to the ecosystem polygonal, with which this new property came into force as of yesterday, once block number 23,850,000 had been processed in said network.

As such, when the EIP-1559 in the network of ethereum in August of last year, introducing a mechanism whose main objective was to reduce the margin of commissions for operations in said blockchain. However, despite the fact that the latter worked partially, what was more successful was the introduction of a burning system for part of the commissions ETH destined for miners, a measure that has been especially profitable since there have been days in which the network has destroyed a greater number of tokens than those generated.

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As indicated by the development team, this update in the ecosystem of polygonal will have a similar impact to the one it had on the network of ethereum at the time. Therefore, there will be a discrete base rate for transactions in said network, and a priority rate to streamline the operation, with which the base rate would be destroyed.

favorable projections

In this regard, the statement published by the team reads:

“Polygon’s MATIC has a fixed supply of 10 billion tokens, so any reduction in the number of available units will have a deflationary effect… We take the Ethereum experience from the update [realizada en agosto] as a basis for simulating the potential impact on the total supply of MATIC”.

The calculations made by the team of polygonal estimate that annual burning represents 0.27% of the total supply of MATIC.

Despite the announcement, the price of the token MATIC it remains at about USD $2.04 per unit, which represents a drop of 4.46% in the last 24 hours at the time of publication.


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Fountain: DailyHodl, polygon-blog

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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