Polygon proposes a new fee model to address the situation where tokens have fallen over 60% in a year and competition is intensifying.

According to Mars Finance, the Ethereum Layer 2 network Polygon has proposed a new fee model proposal PIP-85, aimed at reversing the decline of its native token POL, which has fallen over 60% in the past year, and addressing competition from Base and Arbitrum. The proposal will redistribute 50% of the priority fee revenue to network validators and delegators, and adjust the distribution of validator rewards from being based on staking size to being based on contribution performance. In the remaining validator pool, 75% will be allocated based on contributions rather than staking size, while 25% will continue to be allocated according to existing staking weight. The author mentions in the proposal that implementing it does not require any direct on-chain changes.