Polygon's Fee Burn Rate Indicates Potential Deflationary Impac
Polygon's fee burn mechanism has evolved significantly with the transition from MATIC to POL. As of early 2026, the network is navigating a transition from a disinflationary model toward a potentially net deflationary one, driven by recent governance proposals and increased on-chain activity.
The Current State: Disinflationary
The "Burn" Impact: The EIP-1559 mechanism destroys the base fee of every transaction. Historically, this has burned about 0.27% of the supply annually.
The Result: Currently, the network is disinflationary rather than net deflationary. The supply still grows, but at a reduced rate (approx. $2\% - 0.27\% = 1.73\%$ net inflation).
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