Polygon Burns 100M POL Tokens Under EIP-1559 Framework

Polygon permanently removed 100 million POL tokens from circulation on September 23, 2026. The burned tokens had an estimated valuation of $10.12 million and accounted for approximately 1% of the total supply.

The liquidation was made possible by funds accumulated within Polygon's fee-collector contract, which held nearly 121 million POL prior to the transaction.

This burn is in line with Polygon's EIP-1559 framework, which aims to establish a direct correlation between network activity and token supply reductions. Under this model, community participants can trigger burns once contract balances reach protocol-approved thresholds, with supply reductions expected to occur roughly quarterly.

Market commentary suggests that price absorption following supply reduction events unfolds gradually due to broader market liquidity dynamics.