A proposal to revamp Polygon’s tokenomics gains traction as investors express frustration over POL’s underperformance. The proposal, authored by Venturefounder, aims to eliminate the 2% inflation rate and introduce a buyback or burn program. This move is to boost investor confidence and prevent further devaluation and network stagnation.

Polygon’s current model adds 200 million new POL tokens annually due to 2% inflation, leading to price pressure. The proposal suggests moving to a fixed supply or tapering inflation. Venturefounder highlights tokens like BNB, AVAX, and ETH as successful examples of deflationary models, emphasizing the need to strengthen POL’s value proposition.

The proposal follows a manifesto by Venturefounder, criticizing Polygon’s 46% decline and urging transparent communication and infrastructure delivery. Community engagement on the forum debates funding validator rewards, buybacks, and network security impact. Despite competition, Polygon maintains a strong developer community and focus on tokenizing real-world assets.

Polygon faces confidence challenges amid competition from newer layer-2 ecosystems. Despite advancements like zkEVM and AggLayer, investor confidence has waned. The transition to POL from MATIC introduced a 2% annual emissions schedule. However, Polygon still attracts developers seeking technical maturity and enterprise-grade infrastructure.

Read more at Cointelegraph: Polygon Proposal Seeks to End POL Inflation, Add Buybacks