Polygon targets token recovery with new fee distribution model

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Polygon targets token recovery

Highlights

Polygon proposes splitting priority fees between validators and stakers.
PIP-85 aims to revive POL after 60% annual price decline.
Move positions Polygon against Base and Arbitrum fee models.

Validators get everything, delegators get nothing

According to Cryptopolitan, the new fee model (PIP-85) was developed by Polygon Foundation leadership, including founder and CEO Sandeep Nailwal. Currently, most priority fees—paid by users to ускорить transactions—go to validators. The proposal suggests splitting these fees evenly between validators and stakers.

Since the introduction of the current PIP-65 model, priority fees have increased tenfold, with over 5.4 million POL distributed to validators in February alone. However, stakers have not benefited from this growth.

As the proposal notes, “delegators do not see these fees passed on in any meaningful way, and there is significant variability in how validators distribute rewards.” The restructuring is intended to reverse POL’s 60% decline over the past year and revive staking interest.

The remaining validator rewards pool will also be adjusted, with 75% distributed based on performance and only 25% based on stake weight.

Attempt to restore token value

The tokenomics overhaul comes amid intense competition across the Ethereum Layer-2 ecosystem. Base, launched by Coinbase, has taken the top position in total value locked (TVL) with over $4.08 billion, according to DefiLlama. Arbitrum ranks second with about $1.97 billion, while Polygon has fallen to fourth place with $1.26 billion, behind Plasma.

Despite this, Polygon continues to improve technically, increasing throughput from around 1,000 to a target of 5,000 transactions per second. The network has also seen strong enterprise adoption, with companies such as Revolut and Mastercard integrating its infrastructure.

However, POL has struggled financially, losing around 60% of its value over the past year and currently trading near $0.094, with market capitalization below $1 billion.

In this context, Polygon’s initiative reflects an effort to preserve a Web3-driven model by strengthening the link between its token and the network’s economic activity. Redistributing priority fees to stakers could improve token retention and offset pressure from more centralized but efficient competitors.

Polygon’s model differs significantly from rivals. Arbitrum uses a simpler structure where fees are largely captured by the sequencer and partially directed to a DAO, while ARB holders do not directly share in revenue. Meanwhile, Coinbase’s Base operates without a native token, following a Web2-style model where fees effectively become company revenue, allowing for greater flexibility in pricing and growth strategies.

As we wrote, Polygon POL extends rally ahead of fintech-focused rebranding strategy

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