Polygon Under Pressure to Slash POL Token Inflation

Crypto News Altcoins

Polygon Faces Pressure to Cut Token Inflation as POL Slumps

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 07, 2025

Key Takeaways

@venturefounder’s proposal seeks to remove Polygon’s 2% annual token inflation to stabilize POL’s value;
The plan suggests ending inflation or reducing it gradually while using treasury funds for token buybacks or burns;
While many back the changes, some worry about validator rewards and whether buybacks are sustainable during market downturns.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

Polygon Faces Pressure to Cut Token Inflation as POL Slumps

BITDEGREE IN YOUR SOCIAL FEED

A proposal aimed at changing how Polygon MATIC $0.1995 manages its token supply has been gaining support among community members.

The proposal was introduced by a user under the name @venturefounder, who has raised concerns about the weak price performance of the POL token compared to other cryptocurrencies.

It focuses on removing the current 2% annual increase in token supply. @venturefounder argued that this inflation adds hundreds of millions of new tokens each year.

What is a Liquidity Pool in Crypto? (Animated)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

To address this, the proposal suggests eliminating inflation entirely and maintaining a fixed supply. Alternatively, it advises reducing inflation gradually by 0.5% every quarter until it reaches zero.

Additionally, the author recommends that the Polygon treasury use its resources to buy back tokens or burn them.

These changes could bring POL’s supply model more in line with current market expectations and the platform’s ongoing development. Tokens such as BNB BNB $882.49 , Avalanche AVAX $13.15 , and Ethereum ETH $3,092.39 are cited as examples where limited or shrinking supply has helped support value over time.

@venturefounder stated in a post on X that POL had dropped 46% over the past year, despite the overall crypto market, particularly Bitcoin BTC $90,401.76 and Ethereum, performing well.

While many support the proposal, not everyone agrees with it. Some forum members are asking how validator rewards would work without inflation. Others wonder whether buybacks can be maintained during market downturns.

Paul Faecks recently addressed concerns from the community after Plasma's native token, XPL, lost over 50% of its value. What did he say? Read the full story.