What exactly is Ethereum EIP-1559 upgrade on Polygon?

January 18, 2022 09:59 PM AEDT | By Manu Shankar
Follow us on Google News:


  • The much-anticipated implementation of Ethereum’s EIP-1559 upgrade was finally implemented on 17 January, thereby bringing facilities of a partial network fee burning mechanism on the Polygon network.
  • However, following the successful upgrade on the Mumbai testnet, it offers a burning of the MATIC token that gives better visibility to the token.
  • The burning will happen in two steps which begin on the Polygon network and are completed on the Ethereum.

The much-anticipated implementation of Ethereum’s EIP-1559 upgrade was finally done on 17 January, thereby bringing facilities of partial network fee burning mechanism on the Polygon network.

The Ethereum EIP-1559 upgrade, which was made its debut with the following the London Hard Fork in August last year, was one of the biggest upgrades on the ETH platform. Following the successful upgrade on the Mumbai testnet, the latest upgrade offers burning of the MATIC token, thereby offering better visibility to the MATIC token.

The most awaited rollout went live on 18 January at 3:00 UTC at block 23850000, according to polygonscan.com.

What is EIP-1559?

With the recent development, it is expected to bring in the same fee-burning feature to Polygon. With this, the EIP-1559 can inculcate a similar fee-burning feature to the Polygon network, which results in the obliteration of MATIC tokens. Besides, it results in better cost estimations, and it helps in a discrete base fee for transactions that is moved to the next block and fastens the processing of fees following which the tokens are burned.

Also read: What makes EasyFi (EZ) crypto so unique?

The MATIC burning will happen in twin steps which begin on the Polygon network and get completed on the Ethereum network. Through an open interface, the users can constantly monitor the number of tokens burned and at the same time also become part of the burning process.

According to the blog from Polygon network, MATIC comes with a fixed supply of 10 billion tokens, and any reduction in the token is expected to have a deflationary effect. It is expected that this should help both validators and delegators as they are rewarded accordingly and at the same time it will also reduce the congestion within the network.

Also read: What makes Fetch.ai (FET) crypto so unique for IoT investors?

Impact of upgrade

MATIC, despite the upgrade, has not been enjoying a good day in the market on Tuesday. In fact, at the time of drafting, MATIC was down by almost 8% and was trading at US$2.19 with a trading volume of US$1,458,752,186. The 13th ranked token had a live market cap of US$15,987,735,819 and a supply of 7,312,892,503 MATIC coins.

Ethereum too wasn’t having a good day as it was down by 2.47%. ETH was trading at US$3,180.56 with a volume of US$11,878,815,448.

Market experts believe that MATIC could very well set the market on fire in the coming days once the hard fork is completed. The MATIC rally could bring in more investors to its platform and will provide it the much-needed kick to move out of the otherwise bearish phase, experts feel. Only till will tell how significant the impact will be following this upgrade.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top LSE Listed Companies