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The era of deflation is coming! Polygon (MATIC) announces London hard fork, introducing EIP-1559

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The era of deflation is coming! Polygon (MATIC) announces London hard fork, introducing EIP-1559

After testing on the testnet, Ethereum layer 2 scaling solution Polygon announced that the London hard fork, introducing the EIP-1559 upgrade, will be implemented on the mainnet on January 18th.

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Polygon London Hard Fork

After discussions with the community and building consensus, the Polygon team has decided to introduce EIP-1559 following Ethereum standards. The upgrade was deployed on the Mumbai testnet on December 14th last year. Discussion.

Unlike Ethereum, which has no supply cap, the total supply of MATIC tokens is 10 billion. The fee burning mechanism of EIP-1559 will directly transition MATIC into a deflationary era.

EIP-1559 is expected to burn 0.27% of the total supply of MATIC annually, approximately 27 million MATIC tokens worth 63 million USD. The hard fork is scheduled to take place at 09:54 AM Taiwan time on January 18th at block height #23850000. Click here for the countdown clock.

Polygon had previously conducted an emergency mainnet upgrade in early December last year. During the hard fork on December 5th, no detailed explanations were provided publicly. It was not until December 29th that the official disclosure of the significant risks posed by project vulnerabilities was made, prompting emergency measures.

Although the event concluded without major losses and the Matic token price did not collapse, standing at 2.923 USD on December 27th, the team's overly centralized approach still sparked controversy.

Matic is currently ranked 14th by market capitalization. The news of the London hard fork briefly brought a 6% increase, but the price quickly retraced to the level before the announcement.

Matic hourly chart