According to estimates by the Polygon team estimates, MATIC’s supply is likely to become deflationary once fee burning commences. Could this send $MATIC to the moon?
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 does not reduce gas prices.
The team stated that, just like Ethereum, the supply of MATIC is likely to become deflationary with 0.27% of the total supply being burned every year, according to estimations. There is a fixed supply of 10 billion MATIC tokens with 6.8 billion currently in circulation.
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