The CEO of the Polygon Foundation launched a primer Friday explicitly outlining the worth accrual mechanisms for the community’s native token, POL, framing it as a direct beneficiary of the ecosystem’s development.
Sandeep Nailwal stated that his tweet was supposed to “explicitly restate what has at all times been true: If Polygon Chain and Agglayer succeed, then POL holders profit. Full cease.”
Following Nailwal’s tweet, POL hit a weekend excessive of $0.1842, earlier than erasing the lion’s share of its positive aspects with a drop of 6.7% over the previous 24 hours, in line with CoinGecko knowledge.
Polygon’s uneven begin to the week occurred towards a backdrop of bullish elementary messaging from executives and a broader altcoin rally, coinciding with combined on-chain indicators.
Whereas Polygon’s each day income surged from lows of about $13,000 in mid-December to round $200,000 prior to now week, its lively handle depend has slumped from highs of 2.9 million in mid-December to roughly 489,000, in line with Growthepie knowledge.
In accordance with Ryan Lee, Chief Analyst at Bitget, POL’s current value drop “seems to be regular market volatility following an preliminary surge after the Open Cash Stack announcement.” He argued that, “Enhanced utility, burns, and staking mechanisms strengthen POL’s fundamentals, supporting sustained development for the business.”
Nailwal’s submit highlighted three main profit streams for POL holders, together with transaction charges, staking rewards, and future interoperability charges from Agglayer.
His tweet additionally emphasised the token’s deflationary design, noting that 100% of base transaction charges on the Polygon chain are burned.
The Polygon Foundation CEO cited current community demand, which noticed a single-day burn of 3 million POL, arguing that a mean burn fee of 1.5 million POL per day would translate to an annual deflation of roughly 5% of the full provide, which he claimed would make POL “essentially the most deflationary token in the whole business.”
Transaction counts have additionally been elevated, lately hitting 5.9 million in a day, although this nonetheless trails Base’s 10.1 million.
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Alongside Polygon Labs CEO Marc Boiron, Nailwal lately unveiled plans for an “Open Cash Stack,” a long-term initiative that goals to maneuver “all cash onchain.”
The formidable framework targets the multi-trillion-dollar international cash motion market, positioning Polygon’s present infrastructure as the muse for the following period of monetary transactions.
Bitget’s Ryan Lee hailed the Open Cash Stack as a “a extremely progressive and forward-thinking initiative that integrates blockchain rails, stablecoin interoperability, compliance instruments, and fiat on/off-ramps right into a modular framework,” including that it positions Polygon as “a pacesetter in enabling seamless, international on-chain funds, and arguing that it’s going to “considerably drive mainstream adoption within the crypto business.”
