Pseudonymous self-described activist investor Venturefounder has proposed changes to Polygon’s native POL token’s mechanics in an effort to improve its market position. 

The proposal calls for eliminating the 2% annual inflation schedule and setting up a buyback and burn policy for POL, funded by the Polygon Treasury surplus or ecosystem revenues.

“Since 2022, the POL/MATIC token has severely underperformed relative to peers and the broader crypto market,” said Venturefounder.

This story is an excerpt from the Unchained Daily newsletter.

“Despite significant ecosystem development and innovation, token price has dropped over 90% from all-time highs and 46% year-over-year, underperforming virtually every comparable layer 2 or ecosystem token.”

So far, the proposal has been met with a mostly positive response from the wider token holder community and key members of Polygon’s governance forum.

Governance delegate H_Rook noted that it was “certainly a topic worth discussing” but raised questions around how to fund validator rewards sustainably without inflation and the impact on network security.