Following a $24.5 million revenue surge,Polygon Foundation CEO Sandeep Nailwal has proposed a massive token reduction. The plan involves burning 100 million POL tokens to decrease the total circulating supply by 1%.
A 1% supply cut driven by $24.5 million in revenue
The Polygon Foundation is moving toward a more deflationary model to prepare for the next crypto bull cycle. According to the report, the proposed burn of 100 million POL tokens would effectively remove 1% of the current circulating supply from the market. This initiative is fueled by what CEO Sandeep Nailwal describes as "printing revenue," with the protocol reporting $24.5 million in earnings so far this year.
The implementation of this burn is not immediate; it requires a final sign-off from the Polygon Security Council. Once approved,the foundation intends to supplement this initial move with manual quarterly burns to maintain a consistent deflationary pressure on the POL token.
Scaling payment fees 3x higher than Arbitrum
Polygon is aggressively pivoting its ecosystem toward the stablecoin and payments sector to drive protocol utility. As reported by the source, Polygon's current fee structure is significantly more lucrative than its competitors, reportedly generating fees 3x higher than Arbitrum and 5x higher than Near Protocol.
This strategic repositioning appears to be the engine behind the recent revenue growth. By capturing a larger share of the payments market, Polygon is attempting to transition from a pure scaling solution to a primary settlement layer for high-frequency financial transactions.
The struggle to break the $0.11 resistance wall
Market analysts are closely watching the POL price action as it attempts to navigate a period of consolidation. Between June and September, the token saw a substantial rally, climbing from $0.07 to $0.11. However, the price has since retreated to the $0.09 level, where it is currently testing its 200-day moving average.
The $0.11 mark represents a critical psychological and technical barrier, serving as both a 50-week moving average and a previous point of resistance. while Bitcoin's recent climb toward $80,000 has provided a tailwind for the broader market, POL's volatility remains relatively low, as indicated by a flat Average True Range (ATR).
Will the Security Council approve amid 30M POL whale dumps?
Several critical factors remain unverified as the community awaits the Security Council's decision.. First, it remains unclear how much the recent dumping of over 30 million POL by large-scale "whale" holders will impact the liquidity required for a successful burn .. Additionally, while the revenue figures are impressive, the source does not specify the exact breakdown of these earnings or how much of the $24.5 million is being directly reinvested into the burn mechanism versus ecosystem development. Finally, the market is left questioning whether the proposed quarterly burns will be sufficient to counteract the ongoing selling pressure from major holders.
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