Polygon to burn 100 million POL tokens to drive deflation

Polygon Foundation CEO Sandeep Nailwal has announced that the network will permanently burn 100 million POL tokens as part of a move toward a deflationary token model. The burn contract has been deployed to the testnet and is awaiting final signatures from the Polygon Security Council before moving to the mainnet.

The initial 100 million POL burn is a one-time event sourced from a fee collector that has accumulated approximately 121 million POL. This action is expected to remove roughly 1% of the circulating POL supply. Following this event, the network plans to implement quarterly burns using base-fee revenue to create a recurring reduction in supply.

Polygon has reported significant protocol revenue, with year-to-date figures reaching approximately $24.5 million. The company has repositioned itself toward payments and stablecoin-based transfers, with Nailwal noting that generated fees have recently exceeded those of competitors such as Arbitrum and Near Protocol.