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Polygon Burns More Than 650,000 MATIC After Launch of Burn Mechanism

Mon, 04/25/2022 - 14:11
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Tomiwabold Olajide
More than 650,000 MATIC burned since launch of burning mechanism
Polygon Burns More Than 650,000 MATIC After Launch of Burn Mechanism
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As shared by Polygon ecosystem updates, more than 650,000 MATIC have been burned since the launch of the EIP-1559 upgrade on the Polygon mainnet in January. As seen on the Polygonburn website, a total of 658,345.05 MATIC have been burned so far.

The much-anticipated EIP-1559 upgrade launched in January allows Polygon's native token MATIC to be burned in a three-step affair, which is first initiated on Polygon and then completed on Ethereum. This is similar to a withdrawal transaction on Polygon, but instead of the tokens being received by a user, they are burned and removed from the total supply.

Each time a user pays for a transaction, the base fee gets locked on the burn contract on Polygon and the priority fee gets paid to the validator. Once MATIC gets accumulated on the burn contract, users can initiate the burn process from Polygon.

Polygon MATIC has a fixed supply of 10 billion, thus an annualized burn would represent 0.27% of the total MATIC supply, according to analysis.

In the past week, financial service provider Stripe announced that its merchants would be allowed to make initial payouts using USDC Stablecoins native to Polygon's network.

Polygon also unveiled Supernets, a scalable blockchain infrastructure that aims to ignite mass adoption of Polygon and Web3. Polygon says its goal is to bring mass adoption to Web3 and thus sees the concept of Supernets as a major step toward achieving this goal and thus is committing $100 million to its development and adoption. The funds will be used for liquidity mining, development and research contracts and also grants.

In February, Polygon raised about $450 million through a private sale of its native MATIC token in a funding round led by Sequoia Capital India, with participation from SoftBank Vision Fund 2, Galaxy Digital, Galaxy Interactive, Tiger Global, Republic Capital and other investors.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.