Polygon proposals aim to share fees with delegators, reduce validator gaps, and improve reward distribution across the network.
Two new Polygon governance proposals could redistribute millions in crypto rewards by changing how the network shares fees.
The proposals focus on delegators and smaller validators. They arrive as network demand rises and fee generation reaches new highs across the Polygon PoS system.
Proposal Targets Validator Fee Distribution
Two Polygon Improvement Proposals seek to adjust how priority fees are shared across the network. These fees come from transaction tips paid by users.
At present, they are distributed only to validators and block producers. Data shared by contributors shows that about 89.8% of priority fees go to a small group.
Around 20 validators receive most of these rewards. Meanwhile, over 30,000 delegators receive none of this portion.
$1.5 million in priority fees.
89.8% goes to 20 validators.
0% goes to 30,757 delegators.
Two PIPs to change @0xPolygon forever.
PIP 1: Share priority fees with the delegators that stake 99.66% of the capital. Securing the network.
PIP 2: Level the playing field between…
— Just Hopmans (@HopmansJust) March 21, 2026
PIP 1 proposes sharing priority fees with delegators. These participants provide most of the network’s staked capital.
The proposal suggests using existing reward systems, so no new claim process is needed.
PIP 2 introduces a base reward mechanism. This aims to support smaller validators. It also seeks to reduce the gap between large operators and smaller participants.
Concerns Over Centralization and Incentives
Current distribution has raised concerns about validator concentration. Reports show that top validators receive a large share of payouts. Some operators restake rewards, which increases their future share.
One example compares large and small validators. A major operator reportedly earns over $167,000 per payout. A smaller validator earns under $100, despite similar performance.
The proposals state that this gap affects competition. Smaller validators may struggle to cover operating costs.
At the same time, large validators can offer zero commission to attract delegators.
Developers noted that “delegators fund the revenue they are excluded from.” Delegated stake increases validator rewards, but delegators do not share in priority fees.
This structure may weaken long-term participation incentives.
Related Reading: Polygon Launches Agent CLI to Power AI Agents on Blockchain
Network Growth and Rising Fee Pressure
The proposals come as Polygon PoS sees increased usage. The network recently recorded high daily fees and token burn levels. Around 3 million POL tokens were burned in one day.
Higher demand has led to rising gas costs for users. Polygon uses a system where fees increase when blocks are more than half full. As activity grows, base fees adjust upward.
In response, developers are increasing network capacity. The gas limit is being raised from 60 million to 65 million. A future update may also adjust the target block utilization level.
The team stated that these changes aim to stabilize fees during high demand.
Work is also ongoing to reach higher transaction throughput. Plans include scaling toward 5,000 transactions per second and beyond.
