diff --git a/doc/API.md b/doc/API.md
index c26a8c71..a4ae0830 100644
--- a/doc/API.md
+++ b/doc/API.md
@@ -46,6 +46,9 @@
   * [`peerStore.delete`](#peerstoredelete)
   * [`peerStore.get`](#peerstoreget)
   * [`peerStore.peers`](#peerstorepeers)
+  * [`peerStore.tagPeer`](#peerstoretagpeer)
+  * [`peerStore.unTagPeer`](#peerstoreuntagpeer)
+  * [`peerStore.getTags`](#peerstoregettags)
   * [`pubsub.getSubscribers`](#pubsubgetsubscribers)
   * [`pubsub.getTopics`](#pubsubgettopics)
   * [`pubsub.publish`](#pubsubpublish)
@@ -56,7 +59,6 @@
   * [`pubsub.topicValidators.set`](#pubsubtopicvalidatorsset)
   * [`pubsub.topicValidators.delete`](#pubsubtopicvalidatorsdelete)
   * [`connectionManager.get`](#connectionmanagerget)
-  * [`connectionManager.setPeerValue`](#connectionmanagersetpeervalue)
   * [`connectionManager.size`](#connectionmanagersize)
   * [`keychain.createKey`](#keychaincreatekey)
   * [`keychain.renameKey`](#keychainrenamekey)
@@ -1399,6 +1401,81 @@ for (let [peerIdString, peer] of peerStore.peers.entries()) {
 }
 ```
 
+### peerStore.tagPeer
+
+Tags a peer with the specified tag and optional value/expiry time
+
+`peerStore.tagPeer(peerId, tag, options)`
+
+#### Parameters
+
+| Name | Type | Description |
+|------|------|-------------|
+| peerId | `PeerId` | The peer to tag |
+| tag | `string` | The name of the tag to add |
+| options | `{ value?: number, ttl?: number }` | An optional value (1-100) and an optional ttl after which the tag will expire (ms) |
+
+#### Returns
+
+| Type | Description |
+|------|-------------|
+| `Promise<void>` | Promise resolves once the tag is stored |
+
+#### Example
+
+```js
+await peerStore.tagPeer(peerId, 'my-tag', { value: 100, ttl: Date.now() + 60000 })
+```
+
+### peerStore.unTagPeer
+
+Remove the tag from the specified peer
+
+`peerStore.unTagPeer(peerId, tag)`
+
+#### Parameters
+
+| Name | Type | Description |
+|------|------|-------------|
+| peerId | `PeerId` | The peer to untag |
+| tag | `string` | The name of the tag to remove |
+
+#### Returns
+
+| Type | Description |
+|------|-------------|
+| `Promise<void>` | Promise resolves once the tag has been removed |
+
+#### Example
+
+```js
+await peerStore.unTagPeer(peerId, 'my-tag')
+```
+
+### peerStore.getTags
+
+Remove the tag from the specified peer
+
+`peerStore.getTags(peerId)`
+
+#### Parameters
+
+| Name | Type | Description |
+|------|------|-------------|
+| peerId | `PeerId` | The peer to get the tags for |
+
+#### Returns
+
+| Type | Description |
+|------|-------------|
+| `Promise<Array<{ name: string, value: number }>>` | The promise resolves to the list of tags for the passed peer |
+
+#### Example
+
+```js
+await peerStore.getTags(peerId)
+```
+
 ### pubsub.getSubscribers
 
 Gets a list of the peer-ids that are subscribed to one topic.
@@ -1672,32 +1749,6 @@ Get a connection with a given peer, if it exists.
 libp2p.connectionManager.get(peerId)
 ```
 
-### connectionManager.setPeerValue
-
-Enables users to change the value of certain peers in a range of 0 to 1. Peers with the lowest values will have their Connections pruned first, if any Connection Manager limits are exceeded. See [./CONFIGURATION.md#configuring-connection-manager](./CONFIGURATION.md#configuring-connection-manager) for details on how to configure these limits.
-
-`libp2p.connectionManager.setPeerValue(peerId, value)`
-
-#### Parameters
-
-| Name | Type | Description |
-|------|------|-------------|
-| peerId | [`PeerId`][peer-id] | The peer to set the value for |
-| value | `number` | The value of the peer from 0 to 1 |
-
-#### Returns
-
-| Type | Description |
-|------|-------------|
-| `void` |  |
-
-#### Example
-
-```js
-libp2p.connectionManager.setPeerValue(highPriorityPeerId, 1)
-libp2p.connectionManager.setPeerValue(lowPriorityPeerId, 0)
-```
-
 ### connectionManager.size
 
 Getter for obtaining the current number of open connections.
diff --git a/doc/CONFIGURATION.md b/doc/CONFIGURATION.md
index 9ad4230f..e15c0816 100644
--- a/doc/CONFIGURATION.md
+++ b/doc/CONFIGURATION.md
@@ -556,7 +556,6 @@ const node = await createLibp2p({
     maxConnections: Infinity,
     minConnections: 0,
     pollInterval: 2000,
-    defaultPeerValue: 1,
     // The below values will only be taken into account when Metrics are enabled
     maxData: Infinity,
     maxSentData: Infinity,
diff --git a/doc/CONNECTION_MANAGER.md b/doc/CONNECTION_MANAGER.md
index 8d0a3aaf..f25e340a 100644
--- a/doc/CONNECTION_MANAGER.md
+++ b/doc/CONNECTION_MANAGER.md
@@ -17,4 +17,3 @@ The following is a list of available options for setting limits for the Connecti
 - `maxEventLoopDelay`: sets the maximum event loop delay (measured in milliseconds) this node is willing to endure before it starts disconnecting peers. Defaults to `Infinity`.
 - `pollInterval`: sets the poll interval (in milliseconds) for assessing the current state and determining if this peer needs to force a disconnect. Defaults to `2000` (2 seconds).
 - `movingAverageInterval`: the interval used to calculate moving averages (in milliseconds). Defaults to `60000` (1 minute). This must be an available interval configured in `Metrics`
-- `defaultPeerValue`: number between 0 and 1. Defaults to 1.
diff --git a/package.json b/package.json
index 89ebc2b6..75843b2b 100644
--- a/package.json
+++ b/package.json
@@ -86,6 +86,7 @@
     "generate:proto:fetch": "protons ./src/fetch/pb/proto.proto",
     "generate:proto:identify": "protons ./src/identify/pb/message.proto",
     "generate:proto:plaintext": "protons ./src/insecure/pb/proto.proto",
+    "generate:proto:tags": "protons ./src/connection-manager/tags/tags.proto",
     "test": "aegir test",
     "test:node": "aegir test -t node -f \"./dist/test/**/*.{node,spec}.js\" --cov",
     "test:chrome": "aegir test -t browser -f \"./dist/test/**/*.spec.js\" --cov",
diff --git a/src/connection-manager/index.ts b/src/connection-manager/index.ts
index 1ec2e00b..79487226 100644
--- a/src/connection-manager/index.ts
+++ b/src/connection-manager/index.ts
@@ -18,6 +18,7 @@ import * as STATUS from '@libp2p/interface-connection/status'
 import { Dialer } from './dialer/index.js'
 import type { AddressSorter } from '@libp2p/interface-peer-store'
 import type { Resolver } from '@multiformats/multiaddr'
+import { PeerMap } from '@libp2p/peer-collections'
 
 const log = logger('libp2p:connection-manager')
 
@@ -30,13 +31,11 @@ const defaultOptions: Partial<ConnectionManagerInit> = {
   maxEventLoopDelay: Infinity,
   pollInterval: 2000,
   autoDialInterval: 10000,
-  movingAverageInterval: 60000,
-  defaultPeerValue: 0.5
+  movingAverageInterval: 60000
 }
 
 const METRICS_COMPONENT = 'connection-manager'
 const METRICS_PEER_CONNECTIONS = 'peer-connections'
-const METRICS_PEER_VALUES = 'peer-values'
 
 export interface ConnectionManagerInit {
   /**
@@ -79,11 +78,6 @@ export interface ConnectionManagerInit {
    */
   movingAverageInterval?: number
 
-  /**
-   * The value of the peer
-   */
-  defaultPeerValue?: number
-
   /**
    * If true, try to connect to all discovered peers up to the connection manager limit
    */
@@ -138,7 +132,6 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
   public readonly dialer: Dialer
   private components = new Components()
   private readonly opts: Required<ConnectionManagerInit>
-  private readonly peerValues: Map<string, number>
   private readonly connections: Map<string, Connection[]>
   private started: boolean
   private timer?: ReturnType<retimer>
@@ -155,17 +148,6 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
 
     log('options: %o', this.opts)
 
-    /**
-     * Map of peer identifiers to their peer value for pruning connections.
-     *
-     * @type {Map<string, number>}
-     */
-    this.peerValues = trackedMap({
-      component: METRICS_COMPONENT,
-      metric: METRICS_PEER_VALUES,
-      metrics: this.components.getMetrics()
-    })
-
     /**
      * Map of connections per peer
      */
@@ -271,18 +253,6 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
     this.connections.clear()
   }
 
-  /**
-   * Sets the value of the given peer. Peers with lower values
-   * will be disconnected first.
-   */
-  setPeerValue (peerId: PeerId, value: number) {
-    if (value < 0 || value > 1) {
-      throw new Error('value should be a number between 0 and 1')
-    }
-
-    this.peerValues.set(peerId.toString(), value)
-  }
-
   /**
    * Checks the libp2p metrics to determine if any values have exceeded
    * the configured maximums.
@@ -340,10 +310,6 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
       await this.components.getPeerStore().keyBook.set(peerId, peerId.publicKey)
     }
 
-    if (!this.peerValues.has(peerIdStr)) {
-      this.peerValues.set(peerIdStr, this.opts.defaultPeerValue)
-    }
-
     const numConnections = this.getConnections().length
     const toPrune = numConnections - this.opts.maxConnections
 
@@ -370,7 +336,6 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
       this.connections.set(peerId, storedConn)
     } else if (storedConn != null) {
       this.connections.delete(peerId)
-      this.peerValues.delete(connection.remotePeer.toString())
       this.dispatchEvent(new CustomEvent<Connection>('peer:disconnect', { detail: connection }))
 
       this.components.getMetrics()?.onPeerDisconnected(connection.remotePeer)
@@ -475,7 +440,7 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
     const limit = this.opts[name]
     log.trace('checking limit of %s. current value: %d of %d', name, value, limit)
     if (value > limit) {
-      log('%s: limit exceeded: %p, %d, pruning %d connection(s)', this.components.getPeerId(), name, value, toPrune)
+      log('%s: limit exceeded: %p, %d/%d, pruning %d connection(s)', this.components.getPeerId(), name, value, limit, toPrune)
       await this._maybePruneConnections(toPrune)
     }
   }
@@ -491,22 +456,49 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
       return
     }
 
-    const peerValues = Array.from(new Map([...this.peerValues.entries()].sort((a, b) => a[1] - b[1])))
-    log.trace('sorted peer values: %j', peerValues)
+    const peerValues = new PeerMap<number>()
 
+    // work out peer values
+    for (const connection of connections) {
+      const remotePeer = connection.remotePeer
+
+      if (peerValues.has(remotePeer)) {
+        continue
+      }
+
+      const tags = await this.components.getPeerStore().getTags(remotePeer)
+
+      // sum all tag values
+      peerValues.set(remotePeer, tags.reduce((acc, curr) => {
+        return acc + curr.value
+      }, 0))
+    }
+
+    // sort by value, lowest to highest
+    const sortedConnections = connections.sort((a, b) => {
+      const peerAValue = peerValues.get(a.remotePeer) ?? 0
+      const peerBValue = peerValues.get(b.remotePeer) ?? 0
+
+      if (peerAValue > peerBValue) {
+        return 1
+      }
+
+      if (peerAValue < peerBValue) {
+        return -1
+      }
+
+      return 0
+    })
+
+    // close some connections
     const toClose = []
 
-    for (const [peerId] of peerValues) {
-      log('too many connections open - closing a connection to %p', peerId)
+    for (const connection of sortedConnections) {
+      log('too many connections open - closing a connection to %p', connection.remotePeer)
+      toClose.push(connection)
 
-      for (const connection of connections) {
-        if (connection.remotePeer.toString() === peerId) {
-          toClose.push(connection)
-        }
-
-        if (toClose.length === toPrune) {
-          break
-        }
+      if (toClose.length === toPrune) {
+        break
       }
     }
 
diff --git a/test/connection-manager/index.spec.ts b/test/connection-manager/index.spec.ts
index 950223c0..10b06869 100644
--- a/test/connection-manager/index.spec.ts
+++ b/test/connection-manager/index.spec.ts
@@ -51,7 +51,7 @@ describe('Connection Manager', () => {
     expect(libp2p.components.getMetrics()).to.exist()
   })
 
-  it('should close lowest value peer connection when the maximum has been reached', async () => {
+  it('should close connections with low tag values first', async () => {
     const max = 5
     libp2p = await createNode({
       config: createBaseOptions({
@@ -67,20 +67,21 @@ describe('Connection Manager', () => {
 
     const connectionManager = libp2p.components.getConnectionManager() as DefaultConnectionManager
     const connectionManagerMaybeDisconnectOneSpy = sinon.spy(connectionManager, '_maybePruneConnections')
-
-    // Add 1 too many connections
     const spies = new Map<number, sinon.SinonSpy<[], Promise<void>>>()
-    await Promise.all([...new Array(max + 1)].map(async (_, index) => {
+
+    // Add 1 connection too many
+    for (let i = 0; i < max + 1; i++) {
       const connection = mockConnection(mockMultiaddrConnection(mockDuplex(), await createEd25519PeerId()))
       const spy = sinon.spy(connection, 'close')
-      // The connections have the same remote id, give them random ones
-      // so that we can verify the correct connection was closed
-      // sinon.stub(connection.remotePeer, 'toString').returns(index)
-      const value = Math.random()
+
+      const value = Math.round(Math.random() * 100)
       spies.set(value, spy)
-      connectionManager.setPeerValue(connection.remotePeer, value)
+      await libp2p.peerStore.tagPeer(connection.remotePeer, 'test-tag', {
+        value
+      })
+
       await connectionManager._onConnect(new CustomEvent('connection', { detail: connection }))
-    }))
+    }
 
     // get the lowest value
     const lowest = Array.from(spies.keys()).sort((a, b) => {
@@ -100,7 +101,7 @@ describe('Connection Manager', () => {
     expect(lowestSpy).to.have.property('callCount', 1)
   })
 
-  it('should close connection when the maximum has been reached even without peer values', async () => {
+  it('should close connection when the maximum has been reached even without tags', async () => {
     const max = 5
     libp2p = await createNode({
       config: createBaseOptions({
@@ -119,11 +120,11 @@ describe('Connection Manager', () => {
 
     // Add 1 too many connections
     const spy = sinon.spy()
-    await Promise.all([...new Array(max + 1)].map(async () => {
+    for (let i = 0; i < max + 1; i++) {
       const connection = mockConnection(mockMultiaddrConnection(mockDuplex(), await createEd25519PeerId()))
       sinon.stub(connection, 'close').callsFake(async () => spy()) // eslint-disable-line
       await connectionManager._onConnect(new CustomEvent('connection', { detail: connection }))
-    }))
+    }
 
     expect(connectionManagerMaybeDisconnectOneSpy.callCount).to.equal(1)
     expect(spy).to.have.property('callCount', 1)