In the world of blockchain technology, one of the key pillars of a network’s success is its tokenomics. This encompasses how tokens are burned, how rewards are distributed to validators, and how these mechanisms contribute to the overall security and sustainability of the blockchain. Over the past year, numerous top Layer-1 blockchains have fine-tuned their burn and reward systems, implementing changes through governance votes, code upgrades, and new economic strategies. Let’s take a closer look at how some of the leading networks are adjusting their tokenomics for better scarcity, security, and long-term growth.
Ethereum (ETH)
Ethereum has seen substantial improvements in its tokenomics through the integration of the Shanghai Upgrade and the EIP-1559 fee burn mechanism. The Shanghai update, which launched in April 2025, allowed validators to withdraw accrued rewards, increasing fee throughput on the network. This helped boost the burned volume by around 10% in the first quarter of 2025. Meanwhile, the validator rewards remain dynamic, fluctuating between 0.5% and 1% annually. Ethereum has also introduced MEV (Maximum Extractable Value) boosts for validators, increasing their earnings by 15%. As a result, Ethereum has shifted to a slight deflationary model, with a current net deflation rate of approximately 0.3% annually.
BNB Chain (BNB)
BNB Chain has implemented a key change in its auto-burn system with the introduction of BSC Improvement Proposal (BIP) 95. This proposal doubled the burn ratio for DeFi router calls, increasing the burn percentage from 10% to 20%. This change accelerates on-chain deflation, especially during high-value swaps. Validators on BNB Chain no longer receive inflation-based rewards. Instead, they share a priority-fee pool, which has become a more lucrative revenue source, particularly with high-TVL (Total Value Locked) decentralized exchanges. The overall result has been a 1.8% reduction in BNB’s circulating supply during the first half of 2025.
Tron (TRX)
Tron’s tokenomics have also evolved with recent governance changes. The network’s Super Representatives (SRs) passed a proposal in June 2025 to lower block rewards from 8 TRX to 6 TRX and voting rewards from 128 TRX to 96 TRX, aiming for a deflationary rate of approximately 1.5% annually. Additionally, Tron introduced a dynamic burn multiplier for Energy fees, particularly for high-compute contracts like gaming and AI-oracles, which burn a higher proportion of TRX. As a result, Tron has become net deflationary, with an annual reduction in supply of 1.6%.
Solana (SOL)
Solana recently passed the SIMD-0228 proposal in February 2025, which introduced a stake-ratio-based inflation model. This model adjusts the annual inflation rate based on how much of the supply is staked: If 75% or more of the tokens are staked, inflation is kept at 0.87% per year, while if less than 50% is staked, inflation rises up to 5% annually. Solana also adjusted its fee-burning mechanism, where 15% of fees are now burned and 85% go to validators. This approach resulted in a slight deflationary trend for Solana, with net inflation dropping to 2.2% annually from 4.5% a year earlier.
Avalanche (AVAX)
Avalanche has introduced new governance parameters that allow subnet creators to divert up to 20% of fees to a community treasury. Any unused portion of these fees is burned monthly, adding a layer of deflation during specific periods. In addition, Avalanche has tweaked its validator reward model, front-loading issuance to incentivize early adoption of new subnets. Despite higher initial issuance, these mechanisms have made Avalanche’s token supply neutral to slightly deflationary, with a minor 0.05% decrease in supply during the first half of 2025.
Polygon (MATIC)
Polygon has recently enhanced its tokenomics with a fee-burn mechanism tied to its zkEVM (Zero-Knowledge Ethereum Virtual Machine) transactions. Now, 20% of Layer 2 fees are bridged back and burned on the Polygon PoS chain. Additionally, Polygon introduced a validator reward reserve top-up, adding 90 million MATIC from the treasury to extend predictable validator yield until late 2026. These changes have led to a 35% increase in MATIC’s on-chain burns in Q2 2025, while validator rewards have remained stable at around 5% annually.
Bitcoin (BTC)
Bitcoin’s tokenomics remain largely unchanged, but recent developments have sparked new discussions. The Taproot upgrade has resulted in higher transaction fees, particularly for P2TR (Pay-to-Taproot) wallet transactions, which in turn have raised miner revenue. Additionally, the popularity of Ordinals and BRC-20 tokens led to temporary fee surges, pushing Bitcoin into a deflationary mode during certain periods. Despite the absence of a formal burn mechanism, the scarcity of certain “sats” (Satoshis) has removed them from the circulating supply, creating an effect similar to a burn.
Sui (SUI)
Sui introduced the Rent-For-State model in March 2025, which applies progressive storage rent to long-lived objects. This model increases storage deposits after 30 days, encouraging a higher burn rate for assets like NFTs and game-related tokens. Sui also introduced Epoch Withdrawal Incentives, where validators can rebate up to 5% of users’ storage deposits for timely cleanup. These efforts have significantly reduced the circulating supply of SUI, with a 60% increase in storage fund “locks” over six months.
Aptos (APT)
Aptos introduced flexibility in its fee-burning mechanism with AIP-136, allowing governance to adjust the burn ratio between 50% and 100%. Currently, 85% of fees are burned, contributing to a deflationary environment. The inflation schedule has also been adjusted to pause inflation decay at 4% until active staking ratios exceed 65%. With its current fee-burn model, Aptos is experiencing net deflation of around 1% annually, assuming typical transaction volumes.
Polkadot (DOT)
Polkadot has adopted a linear issuance model, minting a fixed 120 million DOT tokens annually since November 2024. With an average treasury underspend of around 40 million DOT, the network’s inflation has significantly decreased. Additionally, the DOT tokens used for parachain auction fees are fully burned, further reducing supply. These efforts have lowered Polkadot’s inflation rate from around 10% to 5-6%, offering a more sustainable model for the network’s long-term growth.
Conclusion
As of 2025, Layer-1 blockchains have made significant strides in refining their tokenomics. Networks such as Solana, Aptos, and Sui are leading the way in governance-driven changes to inflation, burn rates, and validator rewards. Fee burns, once pioneered by Ethereum, are now common across networks like Avalanche, Polygon, and Aptos. Even chains with traditionally higher inflation, like Polkadot, are finding ways to reduce their supply growth through treasury burns and auction-based mechanisms.
As these networks continue to evolve, staying informed about governance votes and on-chain decisions is crucial for builders, stakers, and investors. The future of blockchain tokenomics lies in adaptive, community-driven economies that react to both network health and user demand, offering new opportunities for those involved in the ecosystem.
