Proposal: Revision of POL Tokenomics – Elimination of 2% Inflation and Introduction of Treasury Buyback/Burn Policy

Disclosure: I am an ex-Polygon employee and co-author of the Polygon Ecosystem Token.

Any proposal that eliminates inflation completely is untenable - there is a default assumption of 1% for block emissions and 1% for ecosystem treasury. In my technical opinion, there is a case to be made for reduction or redirection of treasury emissions but there is no tangible benefit to reducing block emissions because the margins are already highly competitive, furthermore Polygon has a DPoS stake distribution mechanism which means larger validators are rewarded better so this will lead to strongly disincentivize smaller or home validators, which is untenable from a decentralization perspective. Polygon is one of the few remaining sidechains (or even chains in general) with a sufficiently decentralized validator set.

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