- EIP solution was added to Polygon’s second level scaling network-591
- This will allow you to reach the MATIC burn level of 0,27% of the total supply annually
- The management of the network believes that in this way the asset will become deflationary
Today, 18 January, at about 3 am UTC in the main network of the second level of Polygon, the EIP solution was added-591. Its key task is to make the MATIC cryptocurrency deflationary.
The innovation was tested in Mumbai. The project showed good results, after which the integration of the solution into the main Polygon network was a matter of time.
The update is intended to make transactions more transparent, and also introduce a deflationary mechanism for burning part of the commission when making transactions with MATIC. This will keep the supply level and asset value.
“Together with the integration of EIP- 591 we’re effectively getting rid of primary price auctions, which used to play a major role in commission calculations. Instead, there is now a discrete base fee and a priority fee to speed up transaction processing. After the operation is completed, the base commission is burned, ” says in a press release from the administration. 20300
The solution was run on block 20300. The innovation was supported by many major “players” in this sector, including the Binance crypto exchange.
“Incineration is a two-stage process , which starts in Polygon and continues in Ethereum,” noted the leadership of the network. 20300
Note that the MATIC offer level is fixed at the mark in billion “coins”. Now there are 6.8 billion in circulation. The introduction of EIP-591 will allow burning up to 0,% of the total offer.
Despite a slight fall on the background of the news (the rate fell by 7.8%), in the long term, the innovation will strengthen the position of MATIC. Therefore, the solution will benefit both validators and delegators.
Earlier, we talked about the fact that a week after the introduction of EIP-591 in the ETH network burned over 18 million “coins”. If you want to know more about what EIP-591 is and what the implications of integrating it might be to the ETH network, we recommend that you study our material on this topic.