So, repeat fight mechanic is good, but dying is not. Though two things:
1) If Polukranos has at least 1 toughness and at least one +1/+1 on him, he could prevent any amount of damage without dying, since the part about removing counters doesn't require you to remove the exact number of counters, you just need one to initiate the replacement effect. Much like Sekki, Seasons' Guide (in Sekki's case, he can prevent damage even without a counter)
2) Polukranos's fight ability isn't tied to his +1/+1 counters. In other words, if you mana to buff him with anthem, aura, equipment, etc, he could continue to use his fight ability, as long as he survives. If you wear a Sword of X & Y or Darksteel Plate you can wipe the board easily, with the former targeting specific colors.
Polukranos and Vigor both try to apply a replacement effect if Polukranos would be dealt damage (as prevention is a class of replacement effects). As the controller of the affected object, you choose the order to apply the replacement effects. Apply Vigor's first, and Polukranos's replacement has nothing to replace any more (since no damage is being dealt). The hydra gets bigger instead of smaller.
As far as a Polukranos deck goes, I would definitely want to give him some form(s) of evasion. A 12/12 commander after escaping is a 2-hit KO.
i belive slapping some dredge cards can aids his escape mechanic, whit the obvious addition of Brawn and Filth and focusing by buffing
Polukranos whit aura of all sorts, you can also slap in cards such as Strength from the Fallen and Wreath of Geiststo make it HUGE.
The new hydra aura is the perfect way to keep Polukranos full of counters
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How i feel about competitive players and casual players in EDH: The competitive are german tourists, the casual are italian tourists, both in a italian beach. The italians asking themselves "why are the germans here?" make a legitimate question, the answer is because the beach is beautiful, no matter the country you came from. The italians wanting to ban the germans are dumb, because if the germans pay for their stay and follow the rules like everyone else, they have the right to be in the beach. Hovewer, if the germans started to ask themselves "why are the italians here?"... they would be dumb as hell.