Polygon Foundation CEO Sandeep Nailwal has provided clear insights into how the POL token accrues value, emphasizing sustainable, activity-driven benefits for holders amid renewed network momentum in 2026.
Nailwal has highlighted that POL serves as the core utility token powering both the Polygon PoS chain and the AggLayer interoperability protocol. Unlike traditional equity-like models, POL does not grant holders direct ownership stakes or unrestricted governance control. Instead, its value is tied directly to real network usage and economic activity through three primary mechanisms:
- Transaction Fee Burns – A deflationary force that reduces circulating supply as network activity grows. Recent data shows the Polygon PoS chain consistently burning around 1 million POL tokens daily from base fees, with peaks exceeding 3 million in a single day (representing ~0.03% of total supply). If sustained, this could remove approximately 3.5% of the supply annually, creating upward pressure on the token as more transactions occur. Nailwal has described this as part of Polygon’s “S-curve” growth phase, signaling exponential fee generation and marking 2026 as a potential “resurrection year” for POL.
- Staking Rewards – POL holders can stake their tokens to secure the network and earn rewards. Currently, around 3.6 billion POL are staked, with validators and participants receiving an annual yield of approximately 1.5%. Staking not only provides these direct rewards but also positions holders for additional ecosystem perks, such as eligibility for airdrops from projects in the AggLayer Breakout program (including initiatives like Katana, Miden, and Billions).
- Future AggLayer Interoperability Fees – As the AggLayer evolves into the cross-chain settlement layer unifying Web3, staked POL will capture value from fees generated by interconnected chains. More chains connecting to AggLayer means increased volume, liquidity, transactions, and overall fees, all of which flow back to POL stakers who contribute to security and operations across the ecosystem. Nailwal has stressed that this creates a flywheel effect: greater adoption drives more activity, which in turn enhances rewards and value accrual for POL participants.
Nailwal repeatedly emphasized that these mechanisms ensure POL benefits directly from increased network usage, whether through higher transaction volumes on Polygon PoS, growing stablecoin payments, real-world asset (RWA) activity, or cross-chain interoperability, without conferring equity ownership or centralized governance powers.
This utility-focused design differentiates POL from speculative tokens, aligning holder incentives with genuine ecosystem growth.
With Polygon’s focus on payments, RWAs, and the upcoming Open Money Stack vision, Nailwal’s clarifications come at a needed time.
