Polygon network is a layer 2 solution operating on the Ethereum network. The project is known for offering lower gas fee transactions in comparison to its host ecosystem and faster transaction speed. Recently, the Polygon network developers integrated a major upgrade on the network with EIP-1559 compliance.
The new upgrade has made the Polygon network compatible with the London hardfork upgrade. According to the network users, the latest upgrade went live on the Polygon network at 23,850K Block height yesterday. The testnet for the said update was set up in Mumbai during December. Polygon network is the brainchild of developers from India.
Markus Sotiriou is the digital asset broker at GlobalBlock. Talking about the EIP-1559 protocol adjustment for the Polygon network he told media that investors can expect a significant decrease in the supply of the MATIC, the native token of Polygon after this upgrade. He further explained that over time the MATIC token is going to become more deflationary.
The Polygon network developers have revealed that the maximum supply limit of MATIC tokens is set at 10 billion. Meanwhile, data from on-chain aggregators confirm that the total circulatory supply of MATIC is estimated at around 6.8 billion. With the arrival of the latest update, about 0.27% of the circulatory supply will be sent to the burn addresses.
Shivam Thakral is the CEO at BuyUCoin, an Indian cryptocurrency exchange market. Speaking to the media about the Ethereum improvement Protocol-1559 he claimed that with the new upgrade there is going to be a decrease in the number of spammed transactions. He further explained that since the spam transactions crowd the network unnecessarily, there is also going to be a decrease in the gas fee due to lesser traffic.
Meanwhile, senior analyst at APAC Tony Sycamore recently claimed that it is going to take around 6 months for the update to take effect on MATIC. He claimed that the price increase for the short-term is going to refrain from a parabolic development due to the macroeconomic factors like Fed tapering and lack of state bank liquidity resources.