- The Polygon (MATIC) development team has opened discussions for the implementation of EIP-1559 on its network
- MATIC has a fixed supply therefore implementation of EIP-1559 would mean restructuring payouts
- The development team proposes the implementation of EIP-1559 on Polygon without burning the base fee
- They propose that the base fee be sent to the foundation contract account where the MATIC community will decide on its fate
EIP-1559 on Ethereum is designed to introduce a base fee that will be burnt with each transaction, alongside a priority fee that incentivizes miners to process each transaction.
Polygon Devs. Propose that the Base Fee on MATIC Should Not be Burnt
In the case of implementation of EIP-1559 on Polygon, the development team has pointed out that, unlike Ethereum, the supply of MATIC is fixed. Therefore, burning the base fee on Polygon (MATIC) with each transaction would mean ‘not only restructuring of payouts like the total checkpoint reward, but also legal and regulatory consequences’.
The proposal goes on to suggest that the implementation of EIP-1559 on MATIC should be designed to send the base fee to the project’s foundation contract. This contract is driven by Polygon’s DAO. As a result, the community will have a final say on how the funds are utilized.
The proposal explained the potential base fee feature on Polygon as follows:
We argue that our proposed strategy of depositing the funds to the foundation contract is akin to the strategy of paying future validators.
This is because the DAO will be able to spend the fund on improving and maintaining the network, yielding better long term gain for all validators. It also ensures that all token holders will benefit too, without having to burn tokens and inflate value.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.