PIP-59: Moving the Floor Gas Price of 25 Gwei from Priority Fee to Base Fee

PIP-59
Title: Moving the Floor Gas Price of 25 Gwei from Priority Fee to Base Fee
Author: Manav Darji, Sandeep Sreenath
Description: Proposes transitioning the minimum gas price of 25 Gwei from the priority fee to the base fee in the Polygon PoS network.
status: Draft
Type: Core
Date: 2025-02-11

Abstract

This proposal seeks to move the current 25 Gwei minimum gas price from the priority fee to the base fee. By integrating the floor gas price into the protocol-level base fee, wallets and dApps can more easily query and adapt to changes, reducing manual configurations and improving user experience.

Motivation

The 25 Gwei minimum gas price is currently enforced as a priority fee, configured at the client level. This creates challenges for wallets and dApps that cannot programmatically query the priority fee floor since it is not part of the protocol-level base fee.

When changes are made to the minGas priority fee, wallet providers and other downstream applications must be manually updated, increasing the risk of inconsistencies.

Without knowledge of the correct priority fee floor, users may experience failed transactions (when the floor price is increased) or overpay fees (when the floor price is decreased), degrading UX.

By moving this configuration to the base fee, the floor gas price becomes part of the protocol, ensuring easier access for all applications and reducing the need for manual intervention.

Specification

Base Fee Calculation

This includes modifying the base fee calculation to include a minimum enforced value of 25 Gwei.

When the next block’s base fee is calculated, the protocol will enforce a 25 Gwei minimum price, overriding the EIP-1559 logic; if the calculated base fee is below 25 Gwei, it will be replaced by the 25 Gwei floor value.

// Case when base fee is below gas target
minBaseFee = params.GetMinBaseFee(config.Bor, parent.Number)

// Enforce the minimum base fee for Polygon PoS
if config.Bor != nil {
    baseFee = math.BigMax(baseFee, minBaseFee)
}

A new protocol parameter will be added:

MinBaseFee = 25000000000 // Minimum enforced base fee for EIP-1559 blocks (Polygon-specific).

Backwards Compatibility

This change will not be backward compatible on the protocol consensus layer and will therefore require a hardfork. On the infrastructure layer, this change is backward compatible with existing wallets and apps that rely on querying the base fee.

Adequate notice should be provided on the depreciation of the minGas priority fee to RPCs, dapps, and wallets. Validators can still choose a higher minimum priority fee, which is configurable at the client level.

Security Considerations

Currently, the base fee is burned via the protocol, and the priority fee goes directly to the block producer as a reward. Moving the 25 Gwei enforcement from the priority fee to the base fee will mean transactions no longer require the minimum priority fee.

This could potentially reduce validator rewards in situations where the priority fee is ​​≤ 25 Gwei. Ultimately, the actual effect on validator-specific rewards will depend on user behavior and market dynamics. The impact of this change should be monitored in case of a material reduction in validator rewards.

Copyright

All copyrights and related rights in this work are waived under CCO 1.0 Universal.

2 Likes

I strongly oppose this idea. It will make running validators unprofitable for many, as the fee revenue becomes negligible without the priority fee. The fees are already too low even with the 25 Gwei priority fees, and the significant decline in POL prices has already made validator economics very challenging. Meanwhile, the cost of running a validator continues to rise due to state bloat.

This could potentially reduce validator rewards in situations where the priority fee is ​​≤ 25 Gwei. Ultimately, the actual effect on validator-specific rewards will depend on user behavior and market dynamics. The impact of this change should be monitored in case of a material reduction in validator rewards.

This proposal is deficient without a thorough analysis showing the impact on validator economics. It’s not something that we should be “monitoring” after the fact.

Validators can still choose a higher minimum priority fee, which is configurable at the client level.

This is contradictory to this proposal. Having a consistent minimum fee across all validators is extremely important to prevent stuck transactions. This setting should be removed.

Recommendation:
I recommend rejecting this proposal.

Alternatively, I propose that we eliminate the priority fee floor and raise the minimum base fee to 25 Gwei, but update the implementation so that the bottom 25 Gwei of the base fees go to the validator. Any base fee > 25 Gwei will be burned as usual. This ensures that validator economics remain unaffected while still addressing the UX challenges associated with the priority fee floor.

@manav2401

1 Like

Hi, this is John, one of the Polygon delegates
My stance on this proposal is weak reject

https://medium.com/@nodeinfra/polygon-governance-pip-59-d94d2e855549

1 Like

After analyzing the numbers, I determined that this proposal would result in an average 40% reduction in validator revenue.

Validator economics are already under pressure due to the decline in POL price and a broader drop in onchain activity. This proposal would significantly worsen those conditions, further undermining validator incentives and, by extension, the economic security of the Polygon network.

For these reasons, I strongly recommend rejecting this proposal.



(Monthly granularity, the data for April is partial)

1 Like