diff --git a/src/service/sending.rs b/src/service/sending.rs
index 6c50d2e7..8198249c 100644
--- a/src/service/sending.rs
+++ b/src/service/sending.rs
@@ -4,7 +4,7 @@ use std::{
     future::{Future, IntoFuture},
     pin::Pin,
     sync::Arc,
-    time::{Duration, Instant},
+    time::Duration,
 };
 
 use base64::{engine::general_purpose, Engine as _};
@@ -155,10 +155,7 @@ pub(crate) struct Service {
 #[derive(Debug)]
 enum TransactionStatus {
     Running,
-    // number of times failed, time of last failure
-    Failed(u32, Instant),
-    // number of times failed
-    Retrying(u32),
+    Failed,
 }
 
 struct HandlerInputs {
@@ -293,19 +290,14 @@ impl Service {
         }
 
         if let Err(error) = result {
-            warn!(%error, "Marking transaction as failed");
-            current_transaction_status.entry(destination).and_modify(|e| {
-                use TransactionStatus::{Failed, Retrying, Running};
-
-                *e = match e {
-                    Running => Failed(1, Instant::now()),
-                    Retrying(n) => Failed(*n + 1, Instant::now()),
-                    Failed(..) => {
-                        error!("Request that was not even running failed?!");
-                        return;
-                    }
-                }
-            });
+            // Logging transactions that fail due to backoff produces a lot of
+            // clutter in the logs. Failure due to backoff is expected behavior,
+            // and the transaction will be retried later.
+            if !matches!(error, Error::ServerBackoff { .. }) {
+                warn!(%error, "Marking transaction as failed");
+            }
+            current_transaction_status
+                .insert(destination, TransactionStatus::Failed);
             return Ok(None);
         }
 
@@ -410,27 +402,13 @@ impl Service {
 
         entry
             .and_modify(|e| match e {
-                TransactionStatus::Running | TransactionStatus::Retrying(_) => {
+                TransactionStatus::Running => {
                     // already running
                     allow = false;
                 }
-                TransactionStatus::Failed(tries, time) => {
-                    // Fail if a request has failed recently (exponential
-                    // backoff)
-                    let mut min_elapsed_duration =
-                        Duration::from_secs(30) * (*tries) * (*tries);
-                    if min_elapsed_duration > Duration::from_secs(60 * 60 * 24)
-                    {
-                        min_elapsed_duration =
-                            Duration::from_secs(60 * 60 * 24);
-                    }
-
-                    if time.elapsed() < min_elapsed_duration {
-                        allow = false;
-                    } else {
-                        retry = true;
-                        *e = TransactionStatus::Retrying(*tries);
-                    }
+                TransactionStatus::Failed => {
+                    retry = true;
+                    *e = TransactionStatus::Running;
                 }
             })
             .or_insert(TransactionStatus::Running);
@@ -989,26 +967,29 @@ async fn handle_federation_event(
         }
     }
 
-    let permit = services().sending.maximum_requests.acquire().await;
-
-    let response = server_server::send_request(
-        server,
-        send_transaction_message::v1::Request {
-            origin: services().globals.server_name().to_owned(),
-            pdus: pdu_jsons,
-            edus: edu_jsons,
-            origin_server_ts: MilliSecondsSinceUnixEpoch::now(),
-            transaction_id: general_purpose::URL_SAFE_NO_PAD
-                .encode(calculate_hash(events.iter().map(|e| match e {
-                    SendingEventType::Edu(b) => b.json().get().as_bytes(),
-                    SendingEventType::Pdu(b) => b.as_bytes(),
-                })))
-                .into(),
-        },
-        LogRequestError::No,
-        AllowLoopbackRequests::No,
-    )
-    .await?;
+    let response = services()
+        .sending
+        .send_federation_request(
+            server,
+            send_transaction_message::v1::Request {
+                origin: services().globals.server_name().to_owned(),
+                pdus: pdu_jsons,
+                edus: edu_jsons,
+                origin_server_ts: MilliSecondsSinceUnixEpoch::now(),
+                transaction_id: general_purpose::URL_SAFE_NO_PAD
+                    .encode(calculate_hash(events.iter().map(|e| match e {
+                        SendingEventType::Edu(b) => b.json().get().as_bytes(),
+                        SendingEventType::Pdu(b) => b.as_bytes(),
+                    })))
+                    .into(),
+            },
+        )
+        // The spec states that this endpoint should always return success, even
+        // if individual PDUs fail. If we get an error, something is wrong.
+        .backoff_on(BackoffOn::AllErrors)
+        // The error will be logged in `handle_response`
+        .log_errors(LogRequestError::No)
+        .await?;
 
     for pdu in response.pdus {
         if let (event_id, Err(error)) = pdu {
@@ -1016,8 +997,6 @@ async fn handle_federation_event(
         }
     }
 
-    drop(permit);
-
     Ok(())
 }