The new proposal to overhaul polygon talknomics is gaining momentum across the project’s governance forum and social media as investors express their complaints about Pol’s sudden misperformance compared to the broader crypto market.
Written by activist token investor VentureFounder, the proposal calls for a major revision to the Poilygon (Pol) supply model. This includes eliminating the 2% annual inflation rate and introducing a Treasury-funded buyback or burn program.
“These changes aim to align the supply dynamics of POL in current technological and strategic realities, strengthen investor trust, and further prevent token devaluation and network stagnation,” the venture founder wrote in a forum post.
In the current model, Polygon’s 2% annual inflation adds around 200 million new Portokens to the market each year. This argues that the authors create permanent downward pressure on prices. The proposal suggests that they will either move to a 0% inflation target to establish a fixed supply or adopt a tapering schedule, and will decrease by 0.5% per quarter until zero reaches zero.
The authors argue that a similar approach can enhance Pol’s value proposition as examples of tokens that benefited from the Deflationary or Fixed-Supply model.
The proposal follows the widely distributed manifesto posted by VentureFounder on X. In that post, investors described the current trading levels, which have fallen by 46% in Pol over the past year and below the low bear market in 2022, as “unforgivable” given the Bitcoin (BTC) and the ether-led code bull market.
“These excuses are invalid,” the venture founder wrote. “There’s nothing wrong with the market. Pol has serious problems, and that’s a bad thing.”
In addition to the issue of inflation, the Manifesto has criticized a series of strategic failures by the polygon team since 2022, urging more transparent communication and faster delivery of key infrastructures like Agglayer.
This proposal draws positive engagement from within the polygonal ecosystem. Polygon co-founder Brendan Farmer responded to the debate, with Polygon Labs CEO Marc Boiron acknowledging the proposal on social media.
Forum threads remain open as community members discuss the possibility of funding validator rewards without inflation, sustainability of buybacks, and overall impact on network security.
Related: Polygon says the block is still running despite the consensus bug mess
As competition grows, polygons face the challenge of confidence
Once one of the most highly touted Ethereum scaling solutions, Polygon has built a reputation for powerful innovation, from Zkevm’s deployment to an ambitious coagulator framework designed to unify multiple chains. However, despite these advances, investors’ trust has declined, and competition with new tier 2 ecosystems such as arbitrum, optimism and bases is intensifying.
In 2024, Polygon began moving native tokens from Matic to Poll as part of a broader governance aimed at enhancing community participation and ensuring networks. The transition introduced a 2% annual emissions schedule to fund effective compensation and ecosystem incentives.
Despite recent struggles, Polygon maintains a strong developer community, especially among builders looking for technical maturity and enterprise-grade infrastructure.
As Cointelegraph recently reported, citing research from Mexico, Brazil, Peru and Bolivia, Latin American developers continue to support polygons and Ethereum over new protocols for deploying distributed applications.
Polygon has also doubled the tokenization of actual assets (RWAS). In a recent example, tokenization infrastructure provider Alloyx has launched a polygon tokenized money market fund. This growing RWA activity has helped to drive wider on-chain engagement, including milestones where polygon NFT sales exceeded $2 billion.
magazine: ‘Help! My robot vac is stealing my bitcoin: when smart devices attack