Bullish
Polygon's native token, POL, enters deflationary state with over 107 million tokens burned
In 2026, Polygon's network achieved a deflationary status by burning over 107 million POL tokens, surpassing the 105.2 million tokens minted during the same period. This reduction is primarily driven by the base fee mechanism, which burns a portion of transaction fees. Founder Sandeep Nailwal highlighted the acceleration of this deflationary trend, emphasizing the network's growing role in handling high transaction volumes.
Key points
- Polygon's network processed 198 million transactions in May 2026, marking a significant milestone.
- The deflationary trend is accelerating, with more tokens being burned than minted, indicating a shrinking supply.
- Despite the deflationary trend, the POL token's price remains significantly below its all-time high, suggesting market skepticism.
Sources
AI-generated from public news sources. Not financial advice.
