Polygon Co-founder Calls POL the Most Undervalued Crypto Project
100M POL tokens burned permanently, with 25M more ready for burning.
1POL's undervaluation claim
Sandeep Nailwal, Polygon co-founder, asserts that POL remains the most undervalued cryptocurrency project. The statement comes as the Polygon community permanently burned 100M POL tokens, approximately 1% of total supply. This burning mechanism, funded by chain revenue, aims to create deflationary pressure on the token's economics. Nailwal emphasizes POL's transformation from MATIC and its current market positioning.
2Token burning mechanics
The Polygon network has implemented a systematic token burning process, with 100M POL already destroyed permanently. An additional 25M POL are queued for burning, accumulating daily from network revenues. This mechanism removes approximately 1% of total supply from circulation, creating deflationary pressure. The process continues automatically as the network generates transaction fees and other revenues.
3Network upgrades progress
Polygon is nearing implementation of blockstreaming technology with confirmation times around 1ms, according to Nailwal. The OMS system approaches capacity to handle an extra 1M daily transactions. These upgrades aim to achieve 11M transactions per second throughput. The co-founder stated these developments will eliminate future discussions about network capacity limitations.
4Ecosystem expansion
Polygon's ecosystem growth includes Polymarket launching perpetual contracts on the network. While not endorsing gambling, this demonstrates Polygon's utility for decentralized finance applications. The platform continues to attract diverse projects despite Polygon Labs' July 2026 restructuring and staff reductions. These developments occur alongside the technical upgrades and token economics changes.
5Deflationary tokenomics
POL's transition to a deflationary model marks a significant shift in Polygon's economic design. The burning mechanism directly ties token supply to network usage and revenue generation. This approach contrasts with inflationary models common in early blockchain projects. Nailwal's comments highlight Polygon's maturation from a scaling solution to an ecosystem with complex economic mechanisms.
6Market positioning
Nailwal's valuation comments come amid broader market challenges for layer-2 solutions. The emphasis on POL's undervaluation suggests strategic positioning against competitors. The burned tokens represent permanent supply reduction, potentially increasing scarcity. However, the market impact depends on adoption rates balancing the deflationary pressure from burns.
7Technical roadmap
Polygon's near-term technical developments focus on throughput and finality improvements. The blockstreaming target of 1ms confirmation times would place Polygon among the fastest networks. The OMS system's additional capacity addresses growing demand from ecosystem applications. These upgrades complement the tokenomics changes to strengthen Polygon's value proposition.
8Strategic implications
Polygon's simultaneous focus on tokenomics and technical upgrades reflects a maturing layer-2 strategy. The deflationary model aligns network success with token value, while technical improvements maintain competitiveness. Nailwal's public statements serve both as technical updates and market positioning during a period of organizational changes at Polygon Labs.
Original article: INCRYPTED — Polygon Co-founder Calls POL the Most Undervalued Crypto Project