Economics

POL token economics — supply, issuance, burn, fee distribution, and staking yield.

Supply

POL started with an initial supply of 10B tokens (migrated from MATIC). New POL is minted through the emission contract; POL is removed from circulation through permanent burn.

  • Net supply = initial supply + total minted - total burned
  • Circulating supply = net supply (no locked tokens or vesting)

Issuance

The emission contract mints new POL daily, split equally:

  • Staking emission — distributed as validator and delegator rewards
  • Treasury emission — sent to the community treasury

Combined emission rate is approximately 1% + 1% of initial supply per year.

Burn

Base fees on Polygon PoS are permanently burned. When burn exceeds minting, POL becomes deflationary.

Net issuance = minted - burned

POLTRACK tracks daily burn, 30d totals, and all-time cumulative burn.

Fee distribution

Transaction fees on Polygon PoS flow through two paths:

  • Base fees — routed to permanent burn
  • Priority fees — distributed to validators and stakers

Under PIP-85, stakers receive 37% of the priority fee pool. The remaining 63% goes to validators.

Staking yield

Staking APR has two components:

  • From emission — staking emission divided by total staked supply
  • From fees — priority fee share (PIP-85) divided by total staked supply

Total APR = emission APR + fee APR. This is an indicative modeled allocation, not settled rewards.