The development team behind Polygon (MATIC) has proposed the implementation of an <a href="https://www.cryptoknowmics.com/news/ethereum-developers-fixes-loophole-in-eip-1559-forthcoming-upgrade/">EIP-1559</a> on its network as soon as it’s implemented on the Ethereum blockchain with the London Network Upgrade.
<h2><strong>Polygon (MATIC) Plans  to Implement EIP-1559 On Its Network</strong></h2>
The development team behind Polygon, a layer 2 solution of Ethereum (ETH) has <a href="https://forum.matic.network/t/eip-1559-on-polygon/1230" target="_blank" rel="nofollow noopener">announced</a> on implementing a revised version of an Ethereum Improvement Plan (EIP-1559) on its network following the proposal is implemented in the next <a href="https://www.cryptoknowmics.com/news/ethereums-london-hardfork-is-finally-ready-to-hit-on-testnets/">London hardfork</a>.

https://twitter.com/0xpolygon/status/1406174578779385856

For the implementation of the EIP 1559 on the Polygon network, there won’t be any burning of base fees since MATIC has a fixed supply.

According to the team, instead of burning the base fee, it would be sent to the core contract account where Polygon’s <a href="https://www.cryptoknowmics.com/news/mahadao-launches-valuecoin-arth-will-go-live-on-polygon-matic/">DAO</a> (Autonomous Decentralized Organization) would let the community deliberate on what to do with it.

The deposit of funds into the new contract proposed by the Polygon team is similar to the future payment strategy for validators.  Meanwhile, any sort of deflationary mechanism would mean restructuring payouts.

This will allow DAOs to spend money on improving and maintaining the network, bringing long-term benefits to all validators.

Generally, EIP-1559 on Ethereum introduces a base fee that will be burnt with each transaction, alongside a priority fee that incentivizes miners to process each transaction.
<h2><strong>Restructuring Ethereum's Improvement Proposal</strong></h2>
Currently, Ethereum has a no-issuance limit, the issuance limit for Polygon’s MATIC token is set at 10 billion MATIC. Since MATIC has a fixed supply, burning for each transaction will theoretically be zero. Hence, it's necessary to restructure the method of paying compensation.

EIP-1559 is a proposal that intends to improve Ethereum’s transaction fees with the current auction method to be changed from the standardized fee for the entire network to the method set by the algorithm.

Polygon has soared more than 140 times since the beginning of the year when it hit a record high of $2.62 last month to currently trading at $1.31, at the time of writing.

Polygon (MATIC) Proposes Implementing EIP-1559 On its Network

Polygon (MATIC) has proposed the implementation of a EIP-1559 on its network as soon as its implemented in the next London hardfork.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Polygon (MATIC) Proposes Implementing EIP-1559 On its Network

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