More than 650,000 MATIC burned since launch of burning mechanism
As shared by Polygon ecosystem updates, over 650,000 MATICs 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 is locked into the burning contract on Polygon and the priority fee is paid to the validator. Once MATIC is accumulated on the burning contract, users can initiate the burning 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.
Over the past week, financial services provider Stripe announced that its merchants will be allowed to make upfront payments 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 approximately $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.