This is another case of proof of stake creating a centralized system. I like that there is a capped supply, but the fact that you have to delegate your stake to a validator is a no go for me.
Total Supply and Distribution
The total supply of MATIC tokens is capped at 10 billion. This finite supply is intended to prevent inflation over time. The tokens were initially distributed through a private sale, a launchpad sale, and allocations for the team, advisors, and the Polygon Foundation.
Staking and Network Security
MATIC holders can stake their tokens to participate in the network's consensus mechanism. Validators are chosen based on the amount of MATIC they stake, and they earn rewards for validating transactions and creating new blocks. This staking mechanism is crucial for maintaining the security and integrity of the Polygon network.
Deflationary Mechanisms
While the total supply of MATIC is fixed, certain deflationary mechanisms are in place. A portion of the transaction fees collected in MATIC is burned, permanently removing those tokens from circulation. This burning mechanism helps to counterbalance any inflationary pressure from new token issuance for rewards and can potentially increase the value of MATIC over time. Show Less
