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- Polygon’s Madhugiri hard fork reduces consensus to one second and integrates Fusaka EIPs.
- Upgrade positions the network for stablecoin issuance and RWA tokenization.
- Throughput improves 33%, strengthening Polygon after earlier network disruptions.
Polygon completed its latest major protocol overhaul this week, activating the Madhugiri hard fork — a performance-focused upgrade designed to cut consensus time to one second, streamline complex computation, and strengthen the network for high-frequency stablecoin and real-world-asset (RWA) applications.
The upgrade, which Polygon Labs expects to boost throughput by 33%, arrives at a moment when the industry is rapidly shifting toward RWA tokenization, institutional settlement, and large-scale payments — segments that demand predictable block production and low-latency finality.
One-Second Consensus and Fusaka EIP Support
Polygon core developer Krishang Shah confirmed that the hard fork reduces block consensus time from two seconds to one, enabling faster block announcements and more responsive performance across the proof-of-stake chain. The upgrade also integrates three Fusaka-aligned Ethereum Improvement Proposals — EIP-7823, EIP-7825 and EIP-7883 — which limit gas consumption on heavy mathematical operations.
These optimizations curb the risk of single transactions monopolizing computing power, a concern for networks handling high-throughput financial flows, including stablecoin transfers and on-chain settlement.
The upgrade also introduces a dedicated transaction type for Ethereum-to-Polygon bridge activity and includes new flexibility parameters so future throughput increases can be implemented with minimal engineering overhead. Polygon previously said scaling adjustments could soon be applied like “flipping a few switches.”
Positioning for a Stablecoin and RWA Expansion Cycle
Polygon Labs has repeatedly signaled its intention to serve as a leading infrastructure layer for asset tokenization and regulated digital money. Aishwary Gupta, the company’s global head of payments and RWAs, recently forecast a “stablecoin supercycle,” estimating the issuance of at least 100,000 new stablecoins within five years as institutions rush to tokenize deposits, treasuries, and payment instruments.
But Gupta cautions that growth must be paired with oversight. He argues that RWA markets are only meaningful if the underlying assets can be audited, settled, and traded with transparency — conditions he believes will unlock “trillions in institutional capital.”
The Madhugiri upgrade, with its lower-latency architecture, is framed as foundational infrastructure for those ambitions.
Upgrade Follows Heimdall 2.0 and September Disruption
Polygon’s latest hard fork also builds on July’s Heimdall 2.0 rollout, which cut finality from minutes to roughly five seconds — the chain’s largest technical change since launch. However, a September bug temporarily extended finality to 10–15 minutes, disrupting validator sync and third-party tools before normal operations were restored via emergency hard fork.
Madhugiri now appears to close the loop on those issues, offering a faster, more predictable environment ahead of Polygon’s push toward ecosystem-wide scaling under its broader “AggLayer” roadmap.
With Madhugiri, Polygon is sharpening the chain’s performance for the next phase of on-chain finance. Faster consensus, leaner computation, and bridge improvements form the structural base for stablecoins, RWAs, and institutional-grade liquidity — the sectors Polygon believes will redefine blockchain utility over the next decade.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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