Tag: Eip 1559

Optimism (OP) Prepares for Canyon Hardfork Across Superchain Testnets on November 14

by Blockchain News

The Optimism ecosystem is set to embrace a milestone with the Canyon hardfork, slated for activation on the OP Goerli, OP Sepolia, Base Goerli, Base Sepolia, PGN Sepolia, and Zora Sepolia testnets on November 14, 2023, at 17:00 UTC. Announced by the OP Labs Team on November 7, 2023, this upgrade follows the previous Bedrock network enhancement and is eagerly anticipated across the Superchain.

Collaboratively developed with Base, the Canyon hardfork has undergone successful initial activation on a devnet, paving the way for its deployment on testnets. A subsequent rollout to the OP Mainnet and other Superchain mainnets will depend on the Optimism governance protocol’s approval.

Canyon’s launch brings with it several improvements including Shanghai and Capella hardfork support, alongside a series of minor bug rectifications. Noteworthy EIPs—EIP-3651, EIP-3855, EIP-3860, EIP-4895, and EIP-6049—are incorporated, featuring enhancements like new Ethereum instructions, the phasing out of the SELFDESTRUCT function, and modifications for beacon chain push withdrawals.

A crucial update within Canyon is the fine-tuning of EIP-1559, which adjusts the basefee’s sensitivity to network congestion. This aims to moderate the speed of basefee adjustments, fostering a more stable network fee environment.

Protocol modifications also include improved handling of unclosed channels, allowing for uninterrupted operation progression in certain scenarios. A new field in the deposit transaction receipt encoding is also introduced to correct a discrepancy in the nonce consensus.

Furthermore, the hardfork ensures the deployment of the create2Deployer bytecode across all networks, enabling consistent access to this critical contract for developers.

While end-users may not experience direct impact from these upgrades, node operators are required to update their nodes to conform to the new Canyon specifications. Detailed instructions are available through a publicly accessible guide. Participants in the Optimism ecosystem should watch for upcoming governance updates, which will signal the potential mainnet integration of the Canyon hardfork.

Image source: Shutterstock

Source

Tagged : / / / / / / / / /

Polygon 2.0 Takes Major Step with POL Contracts on Goerli Testnet

by Blockchain News

Three weeks after a Polygon Improvement Proposal (PIP) detailed the specifications for POL, the contracts have been deployed on the Goerli testnet. This is a significant milestone towards the full implementation of Polygon 2.0. The deployment is the culmination of extensive community consultations and signifies the network’s readiness for the next phase of its development.

Two new PIPs, PIP-24 and PIP-25, have been introduced based on community feedback. PIP-24 proposes changes to the EIP-1559 burn system, which has removed over 20 million MATIC tokens from circulation since its implementation in January 2022. The proposal aims to modify the recipient address of the burn on the Polygon PoS network, making it a prerequisite for the implementation of Phase 0 of Polygon 2.0.

PIP-25, on the other hand, aims to adjust the total supply of POL tokens to ensure a 1:1 ratio with previously burnt MATIC tokens. This proposal is crucial for maintaining consistency in the network’s economic mechanisms, thereby ensuring a smooth transition from MATIC to POL.

In the coming weeks, Polygon plans to share the first steps of the new governance structure for Polygon 2.0. The core of this governance will be a new Ecosystem Council, comprising thought leaders and technology experts in the Web3 community. This council is expected to play a pivotal role in steering the network towards its goals and ensuring that it remains secure and efficient.

For Polygon PoS, Polygon zkEVM users, or MATIC holders, no immediate action is required at this stage. The same holds true for node operators and stakers. However, community members are encouraged to participate in the governance process and provide feedback on the proposed changes.

Polygon POL is the next-generation token designed to replace MATIC in the Polygon 2.0 architecture. It aims to accommodate an ecosystem of zero-knowledge-based Layer 2 chains by enabling staking, community ownership, and governance. POL is expected to handle emission and token migration, serving as the native gas token for the Polygon Proof-of-Stake (PoS) network. The introduction of POL is seen as a transformative step for Polygon, as it not only enhances the network’s capabilities but also aligns with the broader vision of scaling Ethereum to the size of the Internet.

Image source: Shutterstock

Source

Tagged : / / / / / / / / / / /

Total ETH Burned Tops the 2M Token Benchmark Worth Over $5B

by Blockchain News

Since the EIP-1559 upgrade, also known as the London Hardfork went live in August last year, the Ethereum network and its underlying token have been operating as a deflationary protocol.

ETH2.jpg

The implementation of the EIP 1559 upgrade stirred a number of changes in the Ethereum network, one of which is the burning of the transaction fees generated while miners are rewarded based on prioritized tipping paid by transaction initiators.

Since the upgrade went live, the Ether burn rate has hit a significant milestone, with over 2 million Ethereum coins burned thus far. In Accordance with data from Etherchain, exactly 2002146.0 ETH has been burnt, and this is worth approximately $5.87 billion based on the current price of ETH at $2,904.69, according to data from CoinMarketCap.

Per the Etherchain data, the Ethereum blockchain currently has a 50.9% block utilization time and a 2.71 ETH/Min burn rate. As reported by Blockchain.News, the protocol crossed the 1M burnt benchmark back in November of last year.

The London Hardfork was one of the many protocol upgrades that were generally targeted at reducing the pains of the Ethereum network users as congestion was climbing at an alarming rate with the accompanying inconvenience in the form of gas fees owing to bidding wars. With the hardfork going live, the network proposed a base network fee, cutting out the bidding wars.

While the EIP 1559 has contributed in no small measure to the growth and health of the network in terms of easing the usage costs, it has largely given more investors to consider a very bright future for Ethereum in the long run per the deflationary tendencies of the token. Despite the impressive strides of the London Hardfork and other upgrades the Ethereum network has recorded, the ultimate solution to the current scaling and high fees challenges of the protocol is Ethereum 2.0. 

Until Ethereum 2.0, which has continued to gain steam per the total tokens staked, comes to life, the aftermaths of the EIP-1559 upgrade will continually be felt.

Image source: Shutterstock

Source

Tagged : / / /

Total ETH Burned Tops the 2M Token Benchmark Worth Over $5B

by Blockchain News

Since the EIP-1559 upgrade, also known as the London Hardfork went live in August last year, the Ethereum network and its underlying token have been operating as a deflationary protocol.

ETH2.jpg

The implementation of the EIP 1559 upgrade stirred a number of changes in the Ethereum network, one of which is the burning of the transaction fees generated while miners are rewarded based on prioritized tipping paid by transaction initiators.

Since the upgrade went live, the Ether burn rate has hit a significant milestone, with over 2 million Ethereum coins burned thus far. In Accordance with data from Etherchain, exactly 2002146.0 ETH has been burnt, and this is worth approximately $5.87 billion based on the current price of ETH at $2,904.69, according to data from CoinMarketCap.

Per the Etherchain data, the Ethereum blockchain currently has a 50.9% block utilization time and a 2.71 ETH/Min burn rate. As reported by Blockchain.News, the protocol crossed the 1M burnt benchmark back in November of last year.

The London Hardfork was one of the many protocol upgrades that were generally targeted at reducing the pains of the Ethereum network users as congestion was climbing at an alarming rate with the accompanying inconvenience in the form of gas fees owing to bidding wars. With the hardfork going live, the network proposed a base network fee, cutting out the bidding wars.

While the EIP 1559 has contributed in no small measure to the growth and health of the network in terms of easing the usage costs, it has largely given more investors to consider a very bright future for Ethereum in the long run per the deflationary tendencies of the token. Despite the impressive strides of the London Hardfork and other upgrades the Ethereum network has recorded, the ultimate solution to the current scaling and high fees challenges of the protocol is Ethereum 2.0. 

Until Ethereum 2.0, which has continued to gain steam per the total tokens staked, comes to life, the aftermaths of the EIP-1559 upgrade will continually be felt.

Image source: Shutterstock

Source

Tagged : / / /

Polygon Activates EIP-1559 Hardfork

by Cryptobriefing

Share this article


Polygon has launched EIP-1559 to initiate the real-time burning of MATIC tokens.

EIP-1559 Goes Live on Polygon

Ethereum sidechain network, Polygon has initiated EIP-1559, also called “London Hardfork.”



The update was activated at block height 23850000 at 2:48 am UTC. It replaces Polygon’s previous fee system based on “auctions” with a model that relies on a base fee.

EIP-1559 on Polygon introduces the concept of base fee–an estimated amount of needed for a transaction to be accepted for block validation.

EIP-1559 makes the network fee system more predictable and stable against demand shocks. The base fee amount is adjusted up and down by the protocol based on how congested the network is. This also allows Web3 wallets to automatically adjust the gas fees for users in a reliable manner. 


The Polygon team hopes EIP-1559 will address frequent fee spikes that may affect users’ ability to make transactions on the network.

Instead of paying fee to its validators, EIP-1559 enforces each transaction to burn the base fee paid in MATIC token. The new fee system compensates validators with small priority fee acting as an incentive for them. 

EIP-1559 was launched first on Ethereum as part of the network’s London hardfork in August of last year. Besides achieving predictability in gas fees, EIP-1559 caused a fundamental shift in ETH’s monetary policy. The Ethereum gas fee burning mechanism has a significant effect on reducing the circulating supply of Ether.

In a Monday blog post, the Polygon team said that similar to Ethereum, EIP-1559 may also have a deflationary effect on MATIC due to its fixed token supply of 10 billion tokens. In an analysis, the team found that the EIP-1559 is estimated to burn 0.27% of the total MATIC supply in one year.

Share this article


The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Binance Smart Chain May Clone Ethereum’s EIP-1559 Update

Binance Smart Chain is looking to replicate Ethereum’s gas fee burning mechanism. If introduced, the BEP-90 gas fee proposal will add more deflationary pressure on BNB, in addition to the…

How to Profit From Market Volatility Using Linear and Inverse Contract…

Perpetual contracts are agreements between buyers and sellers with no specific expiry date, unlike other types of similar contracts such as options or futures. It is for the buyer and…

How Polygon and xDai Will Adopt EIP-1559

To maintain their compatibility with Ethereum, Polygon and xDai have also planned to implement the fee burning proposal used in EIP-1559 on their own networks. EIP-1559 on Sidechains Ethereum shipped…

800,000 ETH Burned Since EIP-1559

The Ethereum blockchain has burned around $3.8 billion worth of Ether (more than 800,000 ETH) since the implementation of EIP-1559, which has likely contributed to the ongoing rally for the…


Source

Tagged : / / /

Ethereum EIP-1559 upgrade launches on Polygon to burn MATIC

by Cointelegraph

The Ethereum upgrade that introduced a partial network fee burning mechanism in August last year has launched on the layer-two scaling network Polygon. 

Ethereum’s EIP-1559 upgrade shipped with its London hard fork last summer and has been a success in terms of gas price predictability and network fee burning. The upgrade has now launched on the layer-two scaling network Polygon in an effort to improve “fee visibility”. It went live about an hour ago at block 23850000.

The Polygon team announced the upgrade date on Jan. 17, following its successful deployment on the Mumbai testnet.

The EIP-1559 upgrade introduces the same fee-burning mechanism to Polygon resulting in the destruction of MATIC tokens. It also removes the first-price auction method for calculating network fees which leads to better cost estimations but goes not reduce gas prices.

“The burning is a two-step affair that starts on the Polygon network and completes on the Ethereum network.”

The team stated that, just like Ethereum, the supply of MATIC is likely to become deflationary with 0.27% of the total supply being burnt every year according to estimations. There is a fixed supply of 10 billion MATIC tokens with 6.8 billion currently in circulation.

“Deflationary pressure will benefit both validators and delegators because their rewards for processing transactions are denominated in MATIC,” it added before stating that the upgrade would also reduce spam and network congestion.

Despite being a layer-two network, Polygon has suffered from its own gas crisis recently. Earlier this month, Polygon gas fees skyrocketed according to Dune Analytics resulting in some validators failing to submit blocks. The surge in demand was due to a DeFi yield farming game called Sunflower Land which rewarded early adopters before the degens lost interest.

Related: Here’s how Polygon is challenging the limitations of Ethereum

Since going live on Ethereum around six months ago, the upgrade has resulted in the burning of 1.54 million ETH to date according to the burn tracker. At current ETH prices, this works out at around $5 billion. The tracker also predicts that Ethereum issuance will become deflationary by -2.5% per year once “the merge” happens and proof-of-stake becomes the primary consensus mechanism for the network.

MATIC prices have dumped 9% on the day in a fall to $2.22 at the time of writing according to CoinGecko.

Source

Tagged : / / / / / /

Ascending channel pattern sets Polygon (MATIC) up for a potential 30% rally

by Cointelegraph

Polygon prices look poised to rise by at least 30% in the wake of a key Jan. 18 upgrade that would push a considerable portion of its native MATIC token out of circulation.

Dubbed EIP-1559, the improvement proposal originally came to light as part of Ethereum’s so-called London Hard Fork upgrade on Aug. 5. The proposal effectively started destroying, or “burning,” a part of the fees paid to miners via Ether (ETH).

Traders and investors raised their bids for Ether before and after the EIP-1559 upgrade, noting that it made Ether a deflationary asset for the first time in history. For example, a model created by Ethereum co-founder Justin Drake claimed that EIP-1559 would reduce Ether’s annual supply by 1.6 million ETH.

MATIC looks for new record highs

Polygon, which acts as a layer-2 protocol built to scale Ethereum’s prevailing scalability issues, rolled out a testing implementation of EIP-1559 on Dec. 14, 2021. After the test net launch, MATIC price rallied by almost 30% to $2.35, which includes a brief run-up to its record high near $3.

MATIC/USD daily price chart. Source: TradingView

In theory, a lower supply against a rising demand would make the asset more valuable in the eyes of its bidder.

This classic economic reference has assisted in boosting demand for cryptocurrencies like Bitcoin (BTC) before. Issuance would be halved every four years against a limited supply cap of 21 million units. This begs the question, could the MATIC price rally in the same way? Mineplex co-founder Alexander Mamasidikov thinks yes.

Mamasidikov told Cointelegraph that EIP-1559 would impact MATIC price positively, adding that it could easily rally toward its current record high following the technical upgrade.

“In periods of price recovery, investors are often on the lookout for both technical and fundamental features to hang onto in order to back a coin, and Polygon brandishes both,” he said, adding:

“While Polygon remains a better version of Ethereum in terms of lower transaction costs, it is also the delight of retail investors with respect to its low price at this time when compared with Ethereum or other smart contract networks.”

What do Polygon’s technicals say?

MATIC has been trending higher inside an ascending channel pattern since July 2021, confirmed by at least two reactive highs and two reactive lows.

The token recently retested the channel’s lower trendline around $1.89 as support, a move that was followed up with a bullish retracement toward $2.50. It now acting as resistance and the $2.50 level also turned out to be near the 1.00 Fib line near $2.44.

MATIC/USD daily price chart featuring ascending channel pattern. Source: TradingView

That being said, MATIC may attempt a break above the $2.44-resistance around the EIP-1559 upgrade on Jan. 18. The move would set itself on a course to test its interim upside target near $3, which is approximately a 30% jump.

Related: Polygon network activity spikes as NFT sales reach new height

Meanwhile, if the EIP-1559 factor plays out any longer than anticipated, MATIC price may even attempt an extended run-up toward the 1.618 Fib line around $3.52. Conversely, a rejection at $2.44 could have Polygon retest the ascending channel support for a negative breakout.

Such a move would risk invalidating the bullish setup, as discussed above. All of this is in conjunction with exposing MATIC to a correction toward $1.77 or lower.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.