A growing number of investors are supporting a new proposal to update the Polygon tokenomics. Its goal is to completely remove the 2% annual inflation of the POL token and introduce market buybacks to maintain its value and prevent dilution of the limited supply.
The proposal appeared on the Polygon governance forum, submitted by activist-investor Venturefounder. He noted that the current 2% inflation continues to put pressure on the market, causing the POL price to fall below the bear market lows of 2022. The plan suggests either a complete cancellation of inflation or its gradual reduction over several quarters — supported by the treasury through buybacks or token burns.
Investors Want Polygon to End Inflation and Stabilize the Token Price
Within the Polygon community, questions are increasingly being raised about why the POL price has dropped by almost 46% over the year, despite the project’s growth and the launch of new products. Many believe the problem is not with the team or the technology, but with the tokenomics structure.
According to Venturefounder, the total number of tokens keeps growing, even though demand remains the same. He explained that 2% annual inflation means about 200 million new POL regularly entering the market, increasing selling pressure and reducing buyer interest.
He also noted that the Polygon team is delaying the launch of major initiatives — for example, AggLayer, which is supposed to unite different blockchains within the ecosystem. These delays are causing disappointment in the community, as expectations were much higher. In his opinion, it’s time to finally solve this problem so the token can reflect the real value of the ecosystem.
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As a solution, the activist suggests immediately freezing the total number of tokens to stop the price decline and restore POL‘s value. If this step seems too drastic, a softer approach could be taken — reducing inflation by 0.5% each quarter to give the team time to adapt to the new conditions.
The proposal also mentions launching a buyback and burn program. Polygon could allocate 20% of quarterly profits to buying POL from the market and then destroying it, to reduce the number of coins in circulation and support the price.
Additionally, Venturefounder called for the creation of a public on-chain dashboard with data on the current token supply and for temporarily suspending unplanned sales until the price stabilizes.
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Many in the community call this one of the boldest reforms in the project’s history. The proposal has already been publicly supported by Polygon Labs CEO Marc Boiron and co-founder Brendan Farmer. Investors are also expressing dissatisfaction — it’s unpleasant to see the token lose value despite strong technology and expanding partnerships.
But not everyone is thrilled. Validators fear that without inflation it will be harder for them to maintain their nodes, since part of their rewards comes from new tokens. Many users believe that Polygon should pay rewards from the treasury or fees, not by printing new coins.
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Meanwhile, competition among layer-2 blockchains is getting tougher. Projects like Arbitrum, Optimism and Base are actively attracting users thanks to speed and low fees, taking market share from Polygon .
Analysts are confident that the proposed changes could inspire other crypto projects facing similar problems. Some even believe that if the reform succeeds, POL could return to the top 10 cryptocurrencies by market capitalization.
