How Polygon Hard Fork Will Boost Network Performance and MATIC Price
The Polygon PoS chain is preparing for a significant upgrade on Jan. 17, through a hard fork aimed at improving performance and predictability. The proposed changes include reducing gas spikes and addressing chain reorganization issues that have been identified by the community and the Polygon team as priorities for the network's development.
Besides the fork, Polygon (MATIC) has had an otherwise impressive start to the new year as well, with a series of high-profile partnerships and launches with massive names like Disney and Reddit, as well as the launch of its web3-focused incubator with Mastercard.
The MATIC token is currently up 14.12% in the last seven days and is up 1.4% over the past 24 hours as the wider crypto market rally stalls for the time being.
The changes proposed by the hard fork aim to reduce the severity of gas spikes and address chain reorganization inefficiencies in an effort to reduce time to finality (the amount of time it takes for a transaction to be considered final and irreversible on the blockchain).
The first proposed upgrade aims to reduce gas spikes by changing the BaseFeeChangeDenominator from 8 to 16. This will help smooth out the increase/decrease rate in the base fee (the minimum fee for block inclusion) when the gas exceeds or falls below the target gas limits in a block.
The reasoning behind this change is that when the chain experiences high demand, the base gas fee experiences exponential spikes, which are not normal or good during surges in demand on any blockchain protocol. So, by increasing the denominator from 8 to 16, the growth curve can be flattened, resulting in a more seamless experience when interacting with the chain.
The second proposed upgrade addresses chain reorganizations
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