Polygon Under Pressure to Slash POL Token Inflation

byrn
By byrn
2 Min Read


A proposal aimed at changing how Polygon

MATIC


$0.2484



manages its token supply has been gaining support
among community members.

The proposal was introduced by a user under the name @venturefounder, who has raised concerns about the weak price performance of the POL token compared to other cryptocurrencies.

It focuses on removing the current 2% annual increase in token supply. @venturefounder argued that this inflation adds hundreds of millions of new tokens each year.

What is Staking Crypto? (Rewards & Risks Explained SIMPLY)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

To address this, the proposal suggests eliminating inflation entirely and maintaining a fixed supply. Alternatively, it advises reducing inflation gradually by 0.5% every quarter until it reaches zero.

Additionally, the author recommends that the Polygon treasury use its resources to buy back tokens or burn them.

These changes could bring POL’s supply model more in line with current market expectations and the platform’s ongoing development. Tokens such as BNB

BNB


$1,316.00



, Avalanche

AVAX


$29.90



, and Ethereum

ETH


$4,717.70



are cited as examples where limited or shrinking supply has helped support value over time.

@venturefounder stated in a post on X that POL had dropped 46% over the past year, despite the overall crypto market, particularly Bitcoin

BTC


$125,007.72



and Ethereum, performing well.

While many support the proposal, not everyone agrees with it. Some forum members are asking how validator rewards would work without inflation. Others wonder whether buybacks can be maintained during market downturns.

Paul Faecks recently addressed concerns from the community after Plasma’s native token, XPL, lost over 50% of its value. What did he say? Read the full story.




Source link

Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *