Priority fees for delegators

Today

priority fees → validator's beneficiary

With MIP-11

priority fees → validator's staking pool

MIP-11 is a Draft and is not active on any network. Validators can already share priority fees with delegators, but most don't. MIP-11 makes the protocol do it at the end of every block.

The information on this page should not be quoted. Please refer to MIP-11 for the authoritative spec.

Where one block's priority fees go

Three transactions pay priority fees in a block led by your validator.

Block

tx 10.02 MON
tx 20.05 MON
tx 30.03 MON
Collected in the distribution account 0xfee5…fee5+0.10 MON
End of block: the protocol calls external_rewards for the validator that led the block
Staking pool, split by stake+0.10 MON
Beneficiary balance from priority fees+0 MON

block.coinbase still returns the beneficiary the proposer set. It just stops receiving the priority fees. No transaction can call the distribution step.

What a delegator would get

Your cut of one block's priority fees, for a block your validator leads. Fee presets come from 200 sampled mainnet blocks.

Priority fees in the block

Today (validator doesn't forward fees)0 MON

With MIP-11

If no commission is taken0.00050 MON
If commission is taken0.00045 MON
For comparison: your share of the 18 MON block reward0.1620 MON

The spec says external_rewards will be changed so that it “removes the commission fee” but doesn't say which way. Today externalReward takes no commission. Both readings are shown. Assumes the fees clear the minimum amount below.

The minimum amount decides how much is burned

The spec says fees under dust_threshold are burned instead of distributed. The staking docs have two different minimums that could be meant. Pick one to see what it does to real blocks.

Sampled blocks by total priority fees

4
52
80
50
11
3
<0.010.01+0.03+0.1+0.3+1+

priority fees per block, MON

Sampled blocks by total priority fees
MONblocks
0 to 0.01 MON4
0.01 to 0.03 MON52
0.03 to 0.1 MON80
0.1 to 0.3 MON50
0.3 to 1 MON11
1 to 3 MON3

Blocks with fees burned

197 / 200

Share of priority fees burned

76%

externalReward rejects anything under 1 MON today. If that minimum carries over, almost every block's fees are burned.

200 blocks, every 1,440th from 112,115,098 to 112,401,658, about one day ending 2026-10-11. Fees summed as gas limit times effective priority fee, since Monad charges the gas limit.

Who this affects

Delegators

Get a share of priority fees by stake, credited like other rewards. On the sampled day fees averaged 0.13 MON per block, about 0.7% of the 18 MON block reward.

Validators

Stop keeping priority fees on the beneficiary address. In the forum thread, one reply asked whether losing priority fees will push commissions up to cover operating costs. The thread author replied that validators can adjust their commission.

Contracts and bots that watch block.coinbase

block.coinbase still returns the beneficiary, but its balance no longer grows by the block's priority fees. Anything that reads that balance to track fees has to change.

Delegation contracts

Liquid staking and other wrappers that share priority fees themselves get diluted if users stake with the validator pool directly, since the pool now receives the fees too.

What the spec leaves open

  1. Which minimum applies. dust_threshold could mean the 1 gwei delegation minimum or the 1 MON externalReward minimum. In the sample that is the difference between burning none of the fees and burning 76% of them.
  2. Whether commission is taken. The spec says external_rewards will be changed so it “removes the commission fee.” That can be read as starting to deduct commission or as continuing not to.

Continue the discussion on Monad Forum

Questions, feedback, or a better idea? Weigh in on the forum thread.

Open forum thread