A new proposal to overhaul Polygon’s tokenomics gains momentum in the project management forum and throughout social media, as investors are a voice of failure in Pol’s steep underperformance compared to the broader crypto market.
The proposal.Pol) Model supply, including the removal of a 2% annual inflation rate and the introduction of a treasury-funded fund or burn program to reduce ongoing sales pressure.
“These changes are intended to align POL’s dynamic supplies along with the current technological and strategic reality, strengthen the investor’s confidence, and prevent further token lowering and disruption of the network,” VentureFounder wrote in the forum post.
Under the current model, 2% annual polygon inflation adds nearly 200 million new POL tokens to the market each year – a factor that is set -set will create ongoing downward pressure on the price. The proposal suggests either moving to a 0% target inflation to promote a fixed supply or adopting a schedule of taping, reducing inflation of 0.5% per quarter until it reaches zero.
May -Set Celebrate BNB (Bnb), Avalanche (Avax) and ether (Eth) as examples of tokens that benefit from Deflationary or fixed supply modelsIt is upheld that a similar approach can strengthen the polish value proposal.
The proposal follows a widely transferred manifesto posted by VentureFounder to X, which has gained more than 25,000 views. In that post, the investor described Pol’s 46% denial last year, and the current level of trading below 2022 bear-market lows, as “unable to” during what many consider in a Crypto Bull market led by Bitcoin (Btc) and Ether.
“These reasons are invalid,” VentureFounder wrote. “There’s nothing wrong with the market. There’s something that is serious about Pol, and it’s not good.”
In addition to the inflation issue, the manifesto criticized a series of Polygon team’s strategic missteps since 2022, while urging more clear communication and faster delivery of basic infrastructure such as agglayer.
The proposal will draw a positive relationship from within the polygon ecosystem. Brendan Farmer, Polygon co-founder, responded to the discussion, and Polygon Labs CEO Marc Boiron The proposal was identified on social media.
The forum thread remains open as community members argue with the feasibility of funding rewards without inflation, maintaining purchases and the overall impact on network security.
Related: Polygon says blocks are still running despite interruption in bug
Polygon faces confidence challenges as competition intensifies
When one of the most high -touted Ethereum scaling solutions, Polygon built its reputation to strong technology innovative technology, from the ZKEVM Rollout to the Agglayer’s ambitious framework designed to unite many chains. But despite these advances, investor confidence has disappeared, and competition from the newer Ecosystems of Layer-2 such as Arbitrum, Optimism and Base has intensified.
In 2024, Polygon started moving its native token From Matic to Pol as part of a broader management and tokenomics overhaul intended to enhance community participation and secure the network. The move Introduced a 2% annual release Schedule to fund validator rewards and ecosystem incentives.
Despite its recent struggles, Polygon maintains a strong developer community, especially builders looking for the technical maturity and infrastructure of the business grade.
Number Cointelegraph recently reported.
Polygon also doubled the tokenization of real-world assets (RWAs). In a recent example, Alloyx, a tokenization infrastructure provider, Launched a tokenized funding in the Polygon currency market. Growing RWA activity contributed to greater interaction with onchain, including a milestone where Polygon’s NFT sale exceeds $ 2 billion.
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