Polygon is preparing to burn 100 million $POL . But the main thing here isn’t even the number.
Polygon co-founder Sandip Nailwal said that the contract is already running on the testnet and is awaiting final signatures from the Security Council. After the launch, any participant will be able to initiate a one-time burn of 100 million $POL . Next, quarterly burns are planned, which the community will be able to trigger as well.
For scale: 100 million POL is about 1% of the token’s initial supply.
But I wouldn’t rush to automatically call this a “deflationary token.” $POL still has a minting mechanism, so the real balance between newly issued tokens and those burned will depend on network activity and the volume of fees.
And this is what interests me more than the specific number 100 million.
Burning makes sense not when it sounds good in a headline, but when the network generates enough economic activity for the burn to systematically compete with issuance.
That’s the math I’d be looking at. Because tokenomics is still basically bookkeeping—even when it’s sold as magic.
If you want to understand these mechanics without tokenomic witchcraft, follow along at @MoonMan567
Polygon co-founder Sandip Nailwal said that the contract is already running on the testnet and is awaiting final signatures from the Security Council. After the launch, any participant will be able to initiate a one-time burn of 100 million $POL . Next, quarterly burns are planned, which the community will be able to trigger as well.
For scale: 100 million POL is about 1% of the token’s initial supply.
But I wouldn’t rush to automatically call this a “deflationary token.” $POL still has a minting mechanism, so the real balance between newly issued tokens and those burned will depend on network activity and the volume of fees.
And this is what interests me more than the specific number 100 million.
Burning makes sense not when it sounds good in a headline, but when the network generates enough economic activity for the burn to systematically compete with issuance.
That’s the math I’d be looking at. Because tokenomics is still basically bookkeeping—even when it’s sold as magic.
If you want to understand these mechanics without tokenomic witchcraft, follow along at @MoonMan567
