Polygon is bringing an upgrade to its network with a testnet release known as the Mumbai test network, similar to the EIP-1559 update on the Ethereum network.
EIP-1559, was activated on Ethereum Blockchain during the London hard fork, which took place on August 5, 2021. The update introduced the burning of transactions fees depending on the network load and reduced the volatility of the gas price.
Now Polygon’s core development team is rolling out a testnet implementation of Ethereum Improvement Proposal 1559 to introduce the burning of its native MATIC token and better fee visibility.
Polygon’s MATIC has a fixed supply of 10 billion, so any reduction in the number of available tokens will have a deflationary effect. Polygon team took Ethereum’s experience since the upgrade as the baseline to simulate the potential impact on MATIC’s total supply. The analysis, conducted by the team shows that annualized burn would represent 0.27% of the total MATIC supply.
On Dec 1st, Binance the biggest cryptocurrency exchange announced that its token BNB is going to be burned with every transaction by introducing BSC Bruno Upgrade v1.1.5.