Polygon Aims to Double POL Staking Rewards with Native Staking Model

ChainCatcher reports that Sandeep Nailwal, co-founder of Polygon, stated that the team is developing a new proposal for staking and tokenomics reforms based on community feedback, with Polygon Labs responsible for developing the associated code and submitting it for community forum approval. According to the disclosed plan, Polygon PoS intends to introduce a native staking mechanism similar to L1 protocols, operating in parallel with Ethereum staking. Priority fees from every transaction will be distributed to POL stakers—a mechanism previously approved in PIP-85. The expected APY for POL staking is projected to nearly double, with the majority of new rewards coming from actual network fees rather than token inflation. Additionally, the proposal considers offering further incentives for POL stakers, including potential gas fee discounts and promoting the use of the liquid staking token sPOL within DeFi. Nailwal also noted that Polygon’s revenue has grown tenfold this year, with current throughput reaching 5,000 TPS and block times reduced by 25%, while efforts are underway to bring block times below one second.