Polygon Aims to Burn 100M Tokens Amid Deflationary Push

Polygon is preparing to permanently remove 100 million POL tokens from circulation as part of its deflationary token economics plan. The planned burn will target tokens held by a collector contract, which currently holds 121 million POL generated through network base fees.

The collector contract has accumulated these tokens since Polygon began generating revenue from user activity on its network. In fact, Polygon reported $24.5 million in revenue for the year to date, outperforming other competing networks such as Arbitrum and NEAR.

Polygon CEO Sandeep Nailwal explained that the contracts are currently being tested on testnet and require final Security Council approval before moving to mainnet. Once approved, anyone in the community will be able to trigger the initial 100 million POL burn, which will permanently remove tokens from circulation.