The Polygon ecosystem has grown exponentially in the past year with over 207 million unique addresses, and more than 2.3 billion processed transactions.
Polygon (MATIC) network, an Ethereum scaling solution, has announced a hard fork scheduled for January 17 to reduce the severity of gas spikes and address chain reorganizations (reorgs) in an effort to reduce time to finality.
Polygon Hard Fork
The Polygon community gave the hard fork proposal in a forum discussion following updates provided by the governance team. At the top of the discussion forum, the Polygon community was asked to vote on changes in BaseFeeChangeDenominator and SprintLength. Out of the 15 votes, 87 per cent agreed that decreasing SprintLength to 16 blocks from 64 and increasing BaseFeeChangeDenominator from 8 to 16 will address the current Polygon impasse.
The Polygon governance team noted that changing BaseFeeChangeDenominator from 8 to 16 will help smooth out the increase and decrease rate in baseFee when the gas exceeds or falls below the target gas limits in a block.
The Polygon ecosystem has grown exponentially in the past year with over 207 million unique addresses, and more than 2.3 billion processed transactions. With over 37k decentralized applications already built on the Polygon network – including Uniswap and Aave as well as major companies like Robinhood, Adobe, and Stripe – system changes to improve overall performance are paramount.
Moreover, there are competing smart contract chains with scalable infrastructure and Polygon is not immune to them.
“Longer-term technical upgrades to Polygon PoS are being worked on, like parallelization, even while another promising tech for scaling, like Polygon zkEVM, is being built. But there are also more immediate steps to improve Polygon PoS performance and predictability–proposals that require the network’s approval to become reality,” Polygon network noted.
Polygon Network Market Outlook
The Polygon network has a market capitalization of approximately $7,964,643,386 and a 24-hour trading volume of $538,218,050. With 8,734,317,475 MATIC in circulating supply, approximately 4 billion units have been staked on the PoS program. Moreover, the Polygon network takes pride in 13k delegators on PoS and 100 active validators.
Trading at $0.912286, Polygon MATIC has gained approximately 17 percent in the last seven days. However, MATIC is down over 61 percent in the past year, according to our latest crypto price oracles. Nonetheless, the digital asset has gained over 28882.6 percent from its all-time low achieved three years ago.
The upcoming hard fork is expected to stir up more DeFi activities on the Polygon network as gas fees and transaction finality issues will be addressed. Ultimately, the Ethereum network is expected to remain at the top of the smart contract race despite the emergence of ETH killers.