Polygon Labs CEO Marc Boiron: The Biggest Issue with Stablecoins is Redemption Destruction Fees
Polygon Labs CEO Marc Boiron pointed out that while the industry debates stablecoin regulation, the real biggest issue is the destruction fees during redemption.
He stated that without these fees, the cost of cross-border fund transfers using stablecoins would be significantly lower than existing methods at any scale, to the extent that companies would immediately rush to adopt them without a second thought.
Currently, companies hesitate to enter the stablecoin space due to the high exit costs. The ideal situation should allow people to freely enter and exit stablecoins, gradually holding more as they discover that its programmable features can yield higher returns and optimize payments.
Boiron believes that the growth resulting from this path will far exceed current levels. He hopes the industry recognizes this, allowing stablecoins to immediately dominate the payment sector instead of artificially increasing difficulties. This will eventually happen; it is just a matter of time.
From a market mechanism perspective, destruction fees directly raise exit costs, suppressing large-scale adoption by companies and limiting the free flow of funds. Regulatory discussions occupy attention while the real friction points remain unresolved, benefiting stablecoins and infrastructure projects that can lower or eliminate redemption costs, while traditional cross-border payment channels remain under pressure in the short term.
Source: Public Information
ABAB AI Insight
As the CEO of Polygon Labs, Marc Boiron has been continuously promoting the "Open Money Stack" vision, aiming to move all funds on-chain, emphasizing Polygon's positioning as a payment and stablecoin infrastructure, and discussing network fees and token destruction mechanisms multiple times.
In terms of capital pathways, Polygon attracts corporate funds from traditional banking channels to programmable stablecoin holdings by lowering on-chain transaction costs and promoting free entry and exit of stablecoins, concentrating resources on protocols and issuers that can eliminate redemption friction, replacing short-term fee income with scale effects.
Similar cases can be seen in the early USDT and USDC rapidly expanding market share after low-friction redemptions, as well as some emerging stablecoins currently attempting zero redemption fees to capture cross-border payments; the industry is at a critical stage of stablecoins transitioning from speculative tools to everyday payment infrastructure.
The structural judgment belongs to technological substitution: destruction fees as artificial friction are being replaced by the demand for composability and zero-cost entry and exit, with pricing power shifting from traditional cross-border intermediaries to low-friction on-chain stablecoins, accelerating the growth of holdings and releasing programmable yields through free entry and exit.
ABAB News · Law of Cognition
Exit costs determine entry willingness
Only free entry and exit can truly lock in holdings
Where friction disappears, growth will explode