Polygon (MATIC) will reduce the supply of its digital assets | DeFi Protocol

Polygon (MATIC) will reduce the supply of its digital assets

Polygon's key digital asset development team has decided to implement the EIP-1559 enhancement protocol, which was originally implemented in the Ethereum blockchain, into the operation of its MATIC native tokens.

Polygon has a fixed volume of supply (10 billion tokens), while EIP-1559 will involve a reduction in the volume of such supply. The annual reduction volume will be 0.27% of the total number of native tokens.

The EIP-1559 protocol mechanism introduces a base fee system for all transactions on the blockchain instead of an auction-based transaction confirmation queue. In addition, it introduces a fee for priority validation of a transaction, but the funds for this fee in MATIC will eventually be zeroed out, which will lead to a reduction in the total supply of MATIC tokens.