Polygon (MATIC) suggests deploying EIP-1559 on its network, will there be any changes?

Polygon (MATIC) is one of the standout coins of 2021 with year-to-date growth of 6.962% and continues to hold its own in the top 20 cryptocurrencies. The protocol makes new implementations that can greatly improve the network.

Recently the development team Polygon (MATIC) given suggested implementing EIP-1559 on its network shortly after that improvement was implemented on the Ethereum blockchain via the London upgrade.

Why deploy EIP-1559?

Team Polygon recently announced the implementation of a modified version of the Ethereum Improvement Plan (EIP-1559) on its network after the proposal was implemented on the next London upgrade.

All in all, EIP-1559 is a proposal to burn a base fee for every transaction and introduce a priority fee that encourages miners to process the transaction. However, there are no basic charges burned when EIP-1559 is used in the polygon network, as MATIC has a fixed supply.

As the team emphasized, this basic fee is not burned, but transferred to the core contract account. Here Polygon’s DAO enables the community to decide what to do with the fee. The process of depositing money into the new contract proposed by the Polygon team is similar to the future payment strategy for validators.

In addition, any kind of deflation mechanism would mean re-ordering payments so that the DAOs can spend money on improving and maintaining the network. According to the Polygon team, this will benefit all validators in the long term.

EIP-1559 intends to improve Ethereum’s transaction fees. Accordingly, the current auction method will be changed from a standardized fee for the entire network to one determined by the algorithm.

At the moment, the ETH has no upper limit on the issue offer, while the spending limit of Polygon is set at 10 billion MATIC. Since the MATIC supply is fixed, the burning fee for each transaction should theoretically be zero, so the incentive payment method needs to be restructured.

It also has polygon notification open forum discussions on the proposed implementation of EIP-1559.

Will ETH 2.0 make polygons useless?

Despite the recent fear of popularity and demand for Polygon following the introduction of ETH 2.0, the founders of MATIC disagree. In an online discussion, Polygon co-founder and CEO Jaynti Kanani admitted to hearing about this controversial issue. While ETH 2.0 will be 64 times more scalable than the current network, the real problem will be demand. Kanani says:

“The demand is 1,000 times higher than we currently have. You need the scalability of Layer 2. I am 100% sure that ETH 2.0 will have problems after a few weeks due to the overwhelming demand. “

There is no doubt about the success of MATIC, as the enormous growth of the coin in the last year shows. After MATIC’s 9,000 percent bull run, billionaire Mark Cuban invested an undisclosed amount of money. The Polygon team is optimistic about the future of the network with zk-rollups data supply chains and many other developments currently available for the altcoin.

Although gas fees are currently lower on Ethereum, users still prefer the polygon network. According to recent data, the top 10 decentralized financial (DeFi) applications on the Polygon network attracted more than 242,000 unique active wallets in the past week, while Ethereum only had 100,000 unique active wallets over the same period.

Minh Anh

According to AMBCrypto

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