Polygon has announced that its long awaited London hard fork, which will be initiating the burning of MATIC tokens, is set to go live by January 18.

Yesterday, Polygon has announced that it’s long awaited EIP-1559 upgrade is set to take place by January 18 (about 8a.m UTC). This upgrade is set to change the entire fee market operations on the Ethereum network, as it will be bringing a discrete fee base that is burned instead of being paid to the miners, and an elimination to the first-price auction mechanism.

This upgrade won’t be having a direct impact on the gas fees, but it will be allowing the users to estimate the costs better.

Another main impact of this upgrade is that it’ll be having a deflationary impact on MATIC. Since Polygon’s total supply of tokens is fixed at 10 billion, the reduction of the token number will be having a direct deflationary impact on the asset. A we know, 0.27% of the total supply will be burned annually, which means 27 million MATIC.

This upgrade is going to have a positive impact on the dApps users, as they’ll be enjoying even lower fees, and developers will be receiving a boost as well. Not to forget that the EIP 1559 will also minimize the number of spam transactions and the network congestion.

Finally, will this upgrade have a direct impact on MATIC’s price?