Polygon Foundation CEO Sandeep shared an update on X highlighting a shift in the network’s fee dynamics, noting that Polygon has entered what he described as an “S-curve” phase for fee generation. Over the last several days, base fees have resulted in the burn of roughly one million $POL tokens per day, pointing to a meaningful change in on-chain activity levels.

If this pace were to hold over a full year, the cumulative burn would amount to around 3.5% of POL’s total supply, introducing a material deflationary pressure. At the same time, approximately 3.6 billion POL tokens are currently staked, with validators and stakers earning close to 1.5% annually in POL rewards, keeping incentives balanced against the burn mechanism.

Sandeep framed these dynamics as part of a broader reset for the network, suggesting that the interaction between fee burns, staking, and usage could position 2026 as a recovery phase for POL, driven more by structural economics than short-term speculation.