The Polygon network has implemented Ethereum Improvement Proposal (EIP) 1559, which brings a burning mechanism to the blockchain for its native MATIC token, as well as better fee visibility.

Cryptocurrency exchange Binance implemented its first Binance Coin (BNB) auto-burn program last quarter, effectively removing over 1.6 million BNB tokens worth $750 million from circulation.

Popular non-fungible token marketplace OpenSea has recorded a new all-time high in monthly Ethereum trading volume, recording over $3.5 billion in transactions, surpassing its previous all-time high of $3.42 billion in August 2021.

Top stories in the Crypto Roundup today:

• Polygon Implements EIP-1559 to Burn MATIC
• Binance Destroys $750 Million in BNB in First-Ever Auto Burn
• NFT Marketplace OpenSea Sees Record $3.5 Billion in Monthly ETH Volume
• What is Decentralized Finance (DeFi)?

Polygon Implements EIP-1559 to Burn MATIC

The Polygon network has implemented Ethereum Improvement Proposal (EIP) 1559, which brings a burning mechanism to the blockchain for its native MATIC token, as well as better fee visibility.

EIP-1559 went live on the Ethereum mainnet in August of last year through the London hard fork. This removed  the first-price auction as the main mechanism for transaction fee calculation, instead using a base fee for transactions to be included in the next block and a priority fee for faster processing. The base fee changes based on network congestion and is burned.

The Polygon team has detailed that burning is a “two-step affair that starts on the Polygon network and completes on the Ethereum network,” and that the move does not lower the fees paid for transactions as those are determined by supply and demand.

MATIC is expected to become a deflationary token with EIP-1559, losing 0.27% of its circulating supply every year according to calculations. MATIC has a fixed supply of 10 billion, with 6.8 billion currently in circulation.

Binance Destroys $750 Million in BNB in First-Ever Auto Burn

Cryptocurrency exchange Binance implemented its first Binance Coin (BNB) auto-burn program last quarter, effectively removing over 1.6 million BNB tokens worth $750 million from circulation.

The new auto burn program determines the number of BNB that’s set to be burned using a formula based on the total number of blocks produced on the Binance Smart Chain and BNB’s average dollar-denominated price during the quarter.

The system moves away from Binance’s previous token burn methodology, which was based on revenue generated from the Binance centralized exchange.

Binance is committed to burning 100 million BNB tokens, amounting to half of its original supply, through quarterly burns. Data shows it has destroyed nearly 35 million tokens so far.

NFT Marketplace OpenSea Sees Record $3.5 Billion in Monthly ETH Volume

Popular non-fungible token marketplace OpenSea has recorded a new all-time high in monthly Ethereum trading volume, recording over $3.5 billion in transactions, surpassing its previous all-time high of $3.42 billion in August 2021.

OpenSea’s trading volume in January has topped $169 million per day so far, with the platform’s largest single-day trading volume being $261 million, recorded on January 9. The marketplace’s trading volume boom comes even as competition heats up.

Last week, An upstart NFT platform called LooksRare went live claiming to be a community-focused marketplace that will develop features based on user demand. The marketplace has explained it indexes all NFTs on Ethereum so they can be traded straightaway.

LooksRare is launched with a so-called “vampire attack” on OpenSea, as it uses tokens to poach the pre-existing user base of the project.

What is Decentralized Finance (DeFi)?

DeFi, short for Decentralized Finance, is a term used to describe financial products that are built on permissionless and decentralized blockchains like Ethereum.

This includes all sorts of exciting financial applications that offer lending, borrowing, trading, insurance and much more. The possibilities are almost limitless.

More broadly, DeFi refers to a movement, where the goal is to build a better financial system by leveraging the power of permissionless blockchain technology to create one that is transparent, permissionless, cheaper, open-source and decentralized.

Learn more using CryptoCompare’s complete DeFi guide.

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