【Polygon burned 100 million POL, yet the price fell? What went wrong? 🔥】
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Polygon recently completed a large-scale token burn: 100 million POL were permanently removed from circulation, equivalent to about 1% of the initial supply.
In theory, fewer tokens should provide more support for the price. But in reality, POL fell from around $0.12 at the end of September to about $0.103 on October 12.
Why?
The key point is that burning tokens is not the same as people buying them on the market.
Polygon's mechanism continues to issue new POL. The original tokenomics model set the annual issuance rate at around 2%. If new tokens offset some of the effect of the burn, the supply may not keep shrinking.
Meanwhile, Polygon's payments business has also made new progress.
Its Open Money Stack payment infrastructure has processed an annualized volume of more than $1 billion for two consecutive weeks, mainly across stablecoin transfers, cross-chain transactions, and enterprise payments.
But note: payment volume is not the same as revenue for Polygon, nor does it mean these transactions will directly create demand to buy POL.
So, does POL still have potential?
The two things really worth watching next are whether future burns can consistently exceed new issuance, and whether growth in the payments business can translate into genuine demand to use POL.
📌 Token burns are just one way to reduce supply. What really determines the price is whether supply, real demand, and market capital can combine. Don't assume the price will rise just because you see a burn figure.
#Polygon #pol
🚀 加入X先生的粉丝群跟进
Polygon recently completed a large-scale token burn: 100 million POL were permanently removed from circulation, equivalent to about 1% of the initial supply.
In theory, fewer tokens should provide more support for the price. But in reality, POL fell from around $0.12 at the end of September to about $0.103 on October 12.
Why?
The key point is that burning tokens is not the same as people buying them on the market.
Polygon's mechanism continues to issue new POL. The original tokenomics model set the annual issuance rate at around 2%. If new tokens offset some of the effect of the burn, the supply may not keep shrinking.
Meanwhile, Polygon's payments business has also made new progress.
Its Open Money Stack payment infrastructure has processed an annualized volume of more than $1 billion for two consecutive weeks, mainly across stablecoin transfers, cross-chain transactions, and enterprise payments.
But note: payment volume is not the same as revenue for Polygon, nor does it mean these transactions will directly create demand to buy POL.
So, does POL still have potential?
The two things really worth watching next are whether future burns can consistently exceed new issuance, and whether growth in the payments business can translate into genuine demand to use POL.
📌 Token burns are just one way to reduce supply. What really determines the price is whether supply, real demand, and market capital can combine. Don't assume the price will rise just because you see a burn figure.
#Polygon #pol