Polygon Layoffs and 1inch Founder Exit Expose Crypto’s Costly Pivot to Revenue

Polygon Labs introduced its second spherical of layoffs in 2026 on Thursday, the identical day 1inch co-founder Anton Bukov revealed he was fired in November. Both companies are reorganizing round business priorities whereas their tokens commerce close to document lows.

The parallel shakeups present a tough reality taking maintain throughout the trade. The individuals who constructed crypto’s infrastructure period are paying the worth of its push for actual income.

Polygon Layoffs Mark Fourth Round of Cuts in Three Years

CEO Marc Boiron mentioned Polygon Labs is finishing its transformation from a blockchain basis right into a blockchain-enabled funds firm, focusing on profitability in 2027. He pressured the cuts replicate technique relatively than efficiency, with severance and profession assist for affected employees.

We are within the last phases of finishing the Coinme acquisition, which can contain integrating that staff into Polygon Labs, a transfer that may develop our group as a part of a broader merger train to place Polygon Labs to be worthwhile in 2027. As a part of that course of,…

— Marc | Polygon Labs (💜,⚔️, ※) (@0xMarcB) July 16, 2026

Thursday’s transfer extends a gentle drumbeat. Polygon reduce roughly 100 roles in 2023, one other 60 in 2024, and around 60 more this January after its $250 million-plus deal to purchase Coinme, a US funds agency licensed in 48 states, and pockets developer Sequence.

The enterprise case is seen on-chain. Stablecoin provide on Polygon stands at $3.36 billion, the eighth-largest on any blockchain, per DefiLlama, whereas the corporate says quantity hit a document $9.12 billion in June. Visa additionally added Polygon to its stablecoin settlement program earlier this yr.

“We selected to transfer now as a result of momentum like this deserves an organization constructed to run with it. Revenue is robust, stablecoin quantity retains setting data, our buyer pipeline is stronger than any of us imagined, and our on-chain funds resolution went reside in document time,” Boiron defined.

Polygon Foundation CEO Sandeep Nailwal individually mentioned a 3rd of the staff constructed 13 AI initiatives in a three-day dash, signaling how management expects the remaining employees to work.

A 3rd of the @0xPolygon staff stopped working final week.

we requested them to pause their work to go construct one thing with AI as an alternative and we put $15k on the desk for them to make one thing that really moved the needle and push the enterprise ahead.

3 days later we had 13… pic.twitter.com/MXrYmceLMH

— Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) July 15, 2026

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1inch Co-Founder Says He Was Fired, Launches Second Tier

Hours earlier, Bukov disclosed that 1inch fired him in late November 2025 regardless of his 50% stake. The co-founder, who led the DEX aggregator’s protocol structure and safety since May 2019, mentioned he retains no operational or safety oversight.

Where Polygon frames its restructuring as a technique, Bukov describes his exit as a management dispute. He mentioned he pushed for modifications in administration and communication after person and teammate suggestions, and was dismissed.

“The most necessary lesson that stayed with me: the long-term success of any undertaking stands on two pillars of equal weight – technical excellence and management grounded in values that maintain underneath stress,” Bukov stated.

He is now constructing Second Tier, an infrastructure startup he says will pursue an open monetary system with out friction or middlemen.

Tokens Near Record Lows as Builders Bear the Cost

The market has but to reward both shakeup. Polygon Ecosystem Token (POL) hit an all-time low of $0.068 on July 1 and traded at $0.0838 at press time, down practically 64% in a yr, per BeInCrypto markets knowledge.

“I perceive why Polygon Labs is making this transition. But as a long-term POL holder who has absorbed enormous losses, this raises an necessary query. Polygon Labs is changing into a for-profit funds firm, whereas POL is roughly 98% under its ATH. Holders don’t have any fairness in Polygon Labs and no declare on its future earnings. How will the success of this firm create measurable worth for POL?” one person posed.

Meanwhile, 1inch (1INCH) trades at $0.0739, down 78% over the identical interval after its personal all-time low on June 6.

Both tales level the identical route. Crypto companies are buying and selling protocol-era expertise for business self-discipline, and the approaching quarters will present whether or not token holders ever share within the payoff.

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