Polygon Foundation CEO Sandeep Nailwal announced on Friday that the project will permanently burn 100 million POL tokens, citing impressive protocol revenue performance. According to reports from AMBCrypto, the proposal is currently awaiting final Security Council sign-off before implementation. Following approval, the plan includes manual quarterly burns to maintain the deflationary pressure on the token supply.
Polygon's base fees have generated ₹24.5 million in year-to-date revenue, with the project's collected annual revenue crossing ₹25 million, marking a two-year high according to DeFiLlama data. As reported by AMBCrypto, the collector wallet currently holds 121 million POL tokens worth approximately ₹1.2 million. If the planned burn occurs, this will remove 1% of POL's circulating supply from the market. Following the burn announcement, POL's price surged by 10% on the news, according to AMBCrypto reports.
The altcoin had previously rallied 80% from $0.07 to $0.11 in Q3 before experiencing a sharp pullback in late August. However, whale wallets dumped over 30 million POL tokens in the last three days, potentially stalling the rally as profit-taking activity persists. Despite the whale selling pressure, the token's Friday pump was part of a 20% weekly recovery gain as Bitcoin reclaimed $80K, with POL consolidating above the $0.09 support level which doubles as the 200-day Moving Average.
As reported by AMBCrypto, the daily RSI has yet to hit overbought territory, suggesting potential for further recovery. However, the Average True Range (ATR) remains flat, indicating low volatility and making a strong breakout above $0.11 elusive in the short term. The technical indicators suggest that while the token has shown resilience, a sustained move above current resistance levels will require increased market participation and reduced selling pressure from large holders.
According to AMBCrypto, Polygon has aggressively repositioned itself for payments, particularly stablecoin-based transfers, with the project now generating 3x the traction and fees of Arbitrum and 5x that of Near Protocol. The project's focus on payments infrastructure has contributed to its strong revenue performance and competitive positioning in the blockchain payments sector, positioning it well for continued growth in the expanding digital asset ecosystem.
