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Crypto DeFi

Polygon Burns 100M POL Tokens, Next Phase to Burn 22M

Polygon’s protocol burned 100 million POL tokens two weeks ago using network-generated fees, founder Sandeep Nailwal said, an amount equal to roughly 1% of the token’s total supply. A further 22 million POL, about 0.2% of total supply, is now queued for the next burn phase, Nailwal said.

Original source

AI take

This burn is notable less for its size than for its funding source: the tokens were destroyed with fees the network itself generated, which ties token supply reduction to actual usage rather than to a discretionary treasury action. The follow-on tranche, while smaller, keeps that mechanism in view. The open question is whether fee-funded burns scale with activity or remain episodic, since that determines whether the policy reads as a durable deflationary feature or a one-off gesture.

Generated by AI for reference only.

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