Minimum Validator Commision - Discussion

Thank you for that considered and thoughtful post, @chillyvee :heart:

You made so many good points.

My key takeaways were:

  • Do we want what is best for the growth of the network?
  • Do we want to empower smaller validators to contribute?

I favor the growth of the network and its long-term success, and for that reason I support a non-zero floor. My preference would be between 5-10% because that would cover the costs, even for relayers.

I just don’t see the 0% commission, which is operating at a loss, as a sustainable operation. In fact, I see the floor as a way to ensure validators are compensated for their efforts, yes and for being on-call 24x7x365 :exploding_head:.

The other point of empowering smaller validators, because they would be collecting commissions, is important to note. Since we launched in February 2020 I have seen so many small validators contribute and get recognized for those contributions, rising higher and higher in the rankings. I think the best approach is a hybrid:

  • smaller validators make commissions for blocks produced
    AND
  • they make valuable contributions to the network, which would result in more visibility, delegations and leaders :rocket:

Otherwise, we run the risk of having small validators drop out of the set without ever knowing what they could have contributed and achieved on Secret Network because they can’t afford to keep their operations going. I’ve seen that recently :cry:.

Oh and let’s not forget that staking derivatives are coming and that should be really good for smaller validators! In that case there will be an algorithm deciding what validators to stake with. That should help spread things out and improve decentralization I would think. And if I remember correctly, the staking derivative rules won’t include 0% validators.

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