Prepared in accordance with PFP-2.
Introduction
The Polygon Community Treasury serves as the engine of growth and development for the Polygon network.
To better support this mandate, Season 3 kicked off in August 2025 with a series of governance reforms (see: PFP-2, PFP-3, and PFP-4). These reforms sought to overhaul Treasury operations, ensuring that every token spent was done so transparently and with a provable ROI for the Polygon community.
These reforms were innovative to the Polygon community. They were designed to allow for rapid, executive deployments of capital to support mission-critical projects, infrastructure, and founders- all without sacrificing security, accountability, or decentralization.
Executive Summary
Community Treasury Season 3 (funding period: August 1, 2025 - December 31, 2025) introduced an operational overhaul to Treasury processes. It may take awhile to understand the full ROI of this shift; however, its positive impact is already being felt.
- Over the past quarter, the Community Treasury has executed 80M POL worth of ecosystem deals.
- While most investments are early-stage and yield is not yet mature, we are seeing promising signs of traction in several verticals (e.g., infrastructure, grants, tooling).
- Key challenges ahead include optimizing capital deployment pace, managing risk in volatile markets, and further refining governance oversight.
Financial Overview
Below is a breakdown of each fund’s high-level budget framing and space to report on primary investments.
Fund 1: Liquidity & Incentives
Summary - A capital pool designed to make Polygon the most liquid and composable DeFi environment in the Ethereum ecosystem.
Budget - 25 million POL
- Total Funds Committed - 16.5M POL
- Total Funds Deployed - 500K POL
Emerging Impact
- Legal and operational groundwork completed for upcoming liquidity programs.
- Initiated stablecoin liquidity programs in Brazil, APAC, and Turkey, positioning Polygon as a settlement layer for emerging-market payment rails.
- Advanced market-maker partnerships to improve on-chain depth and trading efficiency for key ecosystem tokens.
Upcoming Deals
- Finalizing multi-chain stablecoin and yield-bearing liquidity programs scheduled for activation in Q4.
- Expected measurable lift in Polygon PoS TVL and stablecoin transaction volume by year-end.
Fund 2: Capital Investments & Infrastructure
Summary - A strategic capital pool focused on strengthening Polygon’s core infrastructure and ecosystem tooling, ensuring reliability, transparency, and scalability across all Polygon networks.
Budget - 40 million POL
- Total Funds Committed - 57M
- Total Funds Deployed - 1M
Emerging Impact
- Deployed capital into institutional-scale RWA tokenization, improving Polygon’s presence in compliant financial markets.
- Invested in core infrastructure that enhances interoperability and data transparency across Polygon’s multi-chain ecosystem.
- Supported integrations that strengthen developer access to tokenized assets and multi-chain liquidity.
Upcoming Deals
- Continuing expansion of RWA marketplaces and cross-chain infrastructure partners.
- Expected outcomes include new tokenized asset listings, deeper institutional engagement, and measurable improvements in cross-chain activity by early 2026.
Fund 3: Founder Support
Summary - A flexible, execution-focused capital pool designed to reduce founder friction and scale activity across the Polygon ecosystem.
Active Budget - 15 million POL
- Total Funds Committed - 6M POL
- Total Funds Deployed - 300K POL
Emerging Impact
- Partnered with Stable Labs to design impact dashboards and data pipelines to measure Season 3 founder outcomes
- Launched founder programs providing targeted marketing support and sponsored security audits to help early-stage teams scale safely and reach new users
Upcoming Deals
- Expanding regional founder programs, including LATAM payments activation and a builder-in-residence initiative
- Continuing expansion of Hadron cohorts and ecosystem service pilots (audits, GTM, accelerators) in Q4
Governance
Transparent, independent governance of the Polygon Community Treasury is a core part of the Treasury’s mandate.
The reforms implemented in Season 3 have been overwhelmingly effective at increasing the efficacy and function of the Treasury Board, including more direct oversight of all spent funds.
A key part of this improvement is due to the monthly internal reports that all Program Directors are tasked with submitting to the Treasury Board. This quarter, 100% of these reports were submitted to the Treasury Board on-time.
In the meantime, the Polygon Labs governance team will soon be pushing changes to PFP-3 that seek to more efficiently and effectively define Treasury operations ahead of Season 4. Once these changes are proposed, a notice will be posted in the Polygon Community Forum.
Lastly, Polygon Labs has partnered with StableLab to develop detailed ROI dashboards for Treasury deals. Work on these dashboards is ongoing. Once live, community members will be able to see current, detailed analytics for both on-chain and off-chain performance metrics.
What’s Next?
The next quarterly report will be published by the Community Treasury Board in January.
In the meantime, our hope is that this becomes a living dialogue with the community — your transparency requests, questions, and suggestions help us refine both the substance and cadence of these reports. As the Treasury matures, we plan to include richer dashboards, comparative benchmarks, and deeper insights into fund performance and impact.