POL Gains Momentum Amid Deflationary Strategy and Open Money Stack Launch

Polygon's native token (POL) has surged 16%, trading near a two-month high, driven by increased network usage and record transaction fees.

The launch of Polygon's 'Open Money Stack' has triggered strong investor interest, aiming to unify on-chain financial infrastructure and reduce reliance on traditional banking systems.

Token burns and deflationary mechanisms are playing a significant role in reducing circulating supply and creating scarcity, enhancing value for token holders.

Polygon's native token (POL) has seen a notable price increase in early 2026, with its price rising by 16% and trading near a two-month high. This surge is attributed to a combination of increased network activity, including high transaction fees and record token burns. A record number of transactions on the Polygon network have driven up fees, which are subsequently burned, permanently reducing the token supply.

The recent launch of the Open Money Stack has further propelled investor interest. This initiative aims to create a vertically integrated on-chain financial system that covers the entire lifecycle of digital capital, from wallets to payment rails, yield mechanisms, and compliance tools. According to analysis, the goal is to enable money to move as freely as information on the internet, allowing for instant and global financial transactions. This move positions Polygon as a foundational layer for global digital finance, aligning with broader trends in decentralized finance.

Polygon restructured its tokenomics in 2025, shifting from an inflationary model to a deflationary framework through daily token burns and treasury buybacks. These burns are expected to reduce the supply of POL by 3.5% by 2025, creating a scarcity-driven value framework. The network's staking activity, with 3.6 billion POL tokens staked, further supports deflationary pressure and liquidity locks. Analysts project that this strategy could lead to a 50% price surge in 2026 due to increased adoption and deflationary dynamics.

What's Driving POL's Recent Price Surge?

Polygon's token price has been driven by several factors, including increased network usage and token burns. Transaction fees on the Polygon network have reached record levels, with nearly 11.4 million POL tokens burned in the process. These burns effectively remove tokens from circulation, reducing supply and potentially increasing demand. The surge in transaction volume has been attributed to high-usage applications such as Circle, Uniswap, and Tether.

The launch of the Open Money Stack has also contributed to the price surge. This initiative aims to keep on-chain money usable indefinitely, reducing the need for off-chain interactions . The market's strong reaction to this announcement reflects growing confidence in Polygon's ability to deliver a comprehensive on-chain financial system .

How Does Polygon's Tokenomics Strategy Affect Supply and Value?

Polygon's tokenomics strategy has shifted from a 2% annual inflation rate to a deflationary model involving daily token burns and buybacks. These actions are expected to reduce the supply of POL by 3.5% by 2025, creating a scarcity-driven framework. The network's staking activity, with 3.6 billion tokens staked and a 1.5% combined reward rate, further supports deflationary pressure.

The deflationary strategy is aligned with models like BNB and AVAX, which have also seen significant price increases due to supply reduction mechanisms. Analysts project that this strategy could lead to a 50% price surge in 2026 due to increased adoption and deflationary dynamics. The combination of daily burns and staking locks liquidity, enhancing the value proposition for token holders.

What's the Role of the Open Money Stack in POL's Growth Narrative?

The Open Money Stack is a key component of Polygon's growth narrative. This initiative aims to create a unified on-chain financial system that enables instant, global, and programmable financial transactions. The stack is designed to cover the entire lifecycle of digital capital, from wallets to payment rails, yield mechanisms, and compliance tools. According to market analysis, the market's strong reaction to this announcement reflects growing trust in the platform's financial ecosystem.

With rising stablecoin liquidity and significant token burns, the Open Money Stack is positioned to reduce complexity for users while enabling seamless global transactions. For businesses, this system offers an alternative to traditional banking rails with instant settlement, global reach, and built-in compliance tools. The Open Money Stack also aims to enable money to move as freely as information on the internet, aligning with broader trends in decentralized finance. This initiative is expected to drive significant adoption and capital flows into the Polygon ecosystem, further supporting the price appreciation of POL.