Minting of Inscription Token causes Polygon transaction fees to surge

The Polygon network, a widely used Ethereum sidechain, has seen a record-breaking surge in daily transaction volume, causing gas fees to rise significantly over the past 24 hours.

Activity on the network escalated dramatically, with the number of transactions soaring from 2.89 million to an all-time high of 6.1 million from November 14 to November 15, the highest level since October last year. Increased network usage caused transaction costs to spike, with average transaction costs rising to over 7,000 Gwei from 100 Gwei the previous day before falling to around 400 Gwei, according to Polygonscan data.

Increased transaction costs, especially token swaps on this site, which cost up to $5, which is a significant increase from normal rates on the network. It has now fallen below $0.50.

However, even during the spike in transaction fees, transaction costs on the Polygon network are still lower than on the Ethereum mainnet, where token swaps can cost between $30 and $50.

A Polygon contributor said the activity can be attributed to a new type of token called PRC-20, the Ordinals-inspired token standard on Polygon. Data shows that users have been collectively minting a PRC-20 token called POLS. These tokens are created using transaction call data from Polygon’s site rather than the normal ERC-20 token standard.

The mechanism is inspired by Ordinals, a protocol designed to generate tokens and NFTs on the Bitcoin network. It involves a process called “inscription” that distributes data to individual satoshis on the Bitcoin network. However, Polygon-based PRC-20 adopts a different strategy, leveraging transaction call data to generate tokens or unique NFT-like image artifacts embedded in network transactions.

The developers had previously launched the token on the Ethereum mainnet in June leveraging the similar Ordinals-inspired protocol Facet.

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