DraftKings was secretly paid to run a Polygon network validator

In March 2022, Polygon boasted about how "The decision by DraftKings, a NASDAQ-listed company, to take an active role in day-to-day operations of a major network is an important adoption milestone for the blockchain industry." The company had agreed to run a validator on the network, and Polygon claimed in a press release at the time that DraftKings would be "an equal community member" among other validators.

However, it turns out that Polygon allocated tens of millions of tokens to the DraftKings validator — far more than they allocated to other validators — on which DraftKings earned a highly unusual 100% of staking rewards. Polygon also sent the company 2.5 million of their MATIC tokens (priced at just over $1.5 million at the time), and it's unclear if this was a purchase by DraftKings or a transfer as a part of the deal.

In October 2023, Polygon kicked DraftKings off the network as the validator had failed to maintain performance standards. Throughout the period that the DraftKings maintained the validator, they earned millions of dollars through the undisclosed partnership.