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.