Polygon network has initiated the EIP-1559 upgrade that could burn about 0.27% of the total MATIC supply in one year.
The update would have a base fee, which is a minimum amount of processing charge in the network.
EIP-1559 burns the base fee for every transaction settled in MATIC tokens instead of paying it to the Polygon validators.
The upgrade was activated at block height 23,850,000 at 0248 Hours UTC to replace the previous fee system.
The Polygon team says that the new system is expected to make the fees more predictable and stable, cushioning against demand shocks.
The network also expects the update to have fewer spam transactions, streamlining operations and reducing congestion.
EIP-1559 upgrade was first introduced in Ethereum in August 2021, where the system adjusts the base fee depending on how congested the network is.
Source: Polygon
