FLAGGING
Updates have been incorporated in PIP-65 which provide greater detail about the calculation and distribution of validator transaction fees.
—
The first most notable change is that network fees will now be distributed directly into a multisig wallet (address: 0x7Ee41D8A25641000661B1EF5E6AE8A00400466B0) rather than into a programmable smart contract.
It was originally intended that a smart contract would be created to collect fees and automatically calculate rewards and reimburse validators. However, unforeseen technical limitations made the use of a smart contract unfeasible in the short term.
Instead, a multisig wallet has been set up. All fees will be automatically sent to this wallet, which is jointly held by Polygon Labs and Regen Financial. On a monthly basis, these teams will work together to calculate and process all validator pay-outs, which will occur on-chain.
Additional work is ongoing which seeks to improve this system in the near term. It is envisioned that the additional block capacity offered by the chain will be taken up with increased usage and adoption, increasing the economic value of validators. Polygon Labs’ recommends a review of this process at that point to ensure validators are sufficiently incentivized to run block producers.
—
The second most notable update has to do with the declared parameters used in the calculation of validator rewards. In this case, the block producer commission rate (C) has been increased from 20% to 26%; factors E (equal distribution factor) and P (proportional distribution factor) have been updated to 60% and 40% respectively.
These changes exist to better balance the validator fee calculation to more closely match current award distributions.
—
As always, please feel free to comment below or reply directly with any questions, comments, or concerns! We’re here to hear 
And thanks to @jerry for flagging these updates as soon as the PIP was updated! Much appreciated 