Activist investor pushes Polygon tokenomics overhaul amid POL price slump

A proposal to overhaul Polygon’s tokenomics is gaining traction, authored by activist investor Venturefounder, in response to POL's significant underperformance compared to the crypto market. The proposal advocates for the removal of the 2% annual inflation rate and suggests implementing a treasury-funded buyback or burn program to alleviate ongoing sell pressure. Venturefounder asserts that these measures aim to better align POL's supply dynamics with its technological realities and to bolster investor confidence. The existing inflation model introduces around 200 million new POL tokens annually, exerting downward price pressure. Ideas include establishing a 0% inflation target or a tapering schedule to gradually reduce inflation. Venturefounder criticized Polygon’s management for strategic missteps since 2022 and emphasized the need for improved communication and quicker project delivery. The proposal has garnered support from the community, including Polygon’s co-founder Brendan Farmer. Polygon, once a leading Ethereum scaling solution, faces intensified competition as it aims to adapt and engage its developer community more effectively.

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