Ethereum’s scalability solution Polygon will implement this network update in its fee model via EIP-1559. An official posting states that this update will bring MATIC to the network and increase its visibility.
Similar Reading: Polygon expands its footprint as evolving NFT and gaming ecosystems seek Ethereum alternatives| Polygon Expands Its Footprint As Evolving NFT And Gaming Ecosystems Seek Ethereum Alternatives
In 2021, Ethereum launched EIP-1559 in partnership with Hard Fork London. The update was highly anticipated as it was supposed to aid mitigate Ethereum’s congestion issues and made fee more predictable. Some people claimed that this update would reduce Ethereum fees. This has been proven false.
Messari’s data shows that Ethereum fees have increased significantly since EIP-1559 implementation. This is at most for a 1-year period.
Polygon reports that the team is ready to release the update tomorrow, January 18th. As the post claims, EIP-1559 changed Ethereum’s first-price auction model for fee calculation to establish a fixed fee to include a transaction on a block. Once the transaction has been verified, it is possible for this fee to change. Here’s how it works:
It is two-step process that begins on the Polygon network, and ends on the Ethereum network. A public interface has been created by the Polygon team so that users can track and participate in the burning process.
Polygon will provide a link to this monitor in the future. The monitor will allow users to view the MATIC burned as well as the live burning process.
In Polygon’s bid to improve the fee mechanism, will EIP-1559 deliver on its promise?
Polygon will reap the benefits for users, validators, delegations, and all other members of the MATIC community. A burning mechanism will contribute with the token’s appreciation as it creates deflationary pressure on its supply.
Some experts believe EIP-1559 was one of the reason for ETH’s price year of continuous appreciation and its bullish momentum. Other people have voiced disappointment that they think the problems on Ethereum are still being fixed with this update.
Vitalik Buterin, the inventor of Ethereum, recently supported EIP-1559. According to a two-year study, Buterin claims that this update achieved its goal of decreasing the average wait time for transactions to be processed on the network.
A great paper was written by researchers from Duke University and Peking University about the effects of EIP1559. Particularly appreciate the confirmation that EIP 1559 has greatly decreased average waiting times for transactions.https://t.co/2rvzx93Yar pic.twitter.com/nPtnAJNle9
— vitalik.eth (@VitalikButerin) January 17, 2022
NewsBTC interviewed Adam Gagol about his co-founding of Aleph Zero non-profit. He spoke out on behalf of NewsBTC and discussed the MEV issue on Ethereum and its effect on users’ fees. Gagol also talked about EIP-1559 and the tradeoffs and advantages. Gagol explained:
(…) the EIP-1559 implementation in London upgrade made the problem even worse. It put in mechanisms to reduce fees and protect against volatility but it did this at the cost of miners. MEV has become more attractive than ever as block production revenue was reduced by about a third.
Similar Reading| Polygon ’s Side Of The Story: Hard-Fork Resolved A “Critical Vulnerability”
Polygon (MATIC) is trading at $2,09 as of press-time. There has been a downside correction in the 24 hours.
