Polygon weighs staking and tokenomics overhaul to route priority fees to POL stakers

Polygon weighs staking and tokenomics overhaul to route priority fees to POL stakers

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News Editor
2026-08-23 00:00:38
Polygon is preparing a community-facing proposal to reshape staking and tokenomics on Polygon PoS, according to co-founder Sandeep Nailwal. He said the effort comes in response to community calls and follows a year in which Polygon posted 10x revenue growth, delivered 5k TPS, and reduced block time by 25%, with work continuing toward sub-one-second block times. In Nailwal’s framing, the next step is to give stakers a larger share of network economics. The proposal would introduce L1-like native staking on Polygon PoS that can run in parallel with Ethereum staking. It would also direct transaction priority fees to POL stakers, building on the already approved PIP-85 and, in Nailwal’s words, making implementation cleaner through native staking. Expected staking yield would move closer to doubling and would be backed by real network fees rather than inflation. The plan also contemplates extra incentives for staked POL, such as gas fee discounts, while keeping sPOL liquid and usable across DeFi. Polygon Labs is set to write the code and submit the proposal to the community forum for review.

Polygon is moving ahead with a staking and tokenomics reform proposal in response to community calls, according to Polygon co-founder Sandeep Nailwal.

Nailwal said Polygon’s revenue has grown 10x this year. He also said the network has delivered 5k TPS and reduced block time by 25%, while continuing to work toward block times below one second. With those milestones in place, he said, the focus now shifts to giving stakers a larger share.

Native staking and priority-fee distribution

The proposal would introduce L1-like native staking on Polygon PoS, running in parallel with Ethereum staking.

It would also route transaction priority fees to POL stakers. Nailwal said PIP-85 has already been approved, and that native staking would make implementation cleaner.

He added that staking yield is expected to come close to doubling, with rewards supported by real network fees rather than inflation.

Extra incentives under discussion

Under the proposal, staked POL could also qualify for additional incentives such as discounted gas fees. At the same time, sPOL would remain liquid and usable in DeFi.

Polygon Labs will write the code and submit the proposal to the community forum for review.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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