Signal a 10% Minimum Validator Commission

This proposal proposes raising the network minimum validator commission from 5% to 10% in a future software upgrade, and bringing every validator currently below 10% up to that level at the upgrade height.

Background

The network minimum validator commission is 5%. Most validators charge exactly that: 27 of the 30 active validators are below 10%, holding about 94% of bonded stake, and the stake-weighted average commission is about 5.5%.

Rationale

  • Sustainable validator revenue. A higher floor lets validators fund secure, reliable infrastructure from commission.
  • Competition on quality. With a higher floor, validators no longer compete as much on commission, so delegators can choose on reliability and governance participation instead.

Why this needs a software upgrade

Changing the minimum commission parameter on its own does not affect validators already below it: the minimum is only checked when a validator is created or edits its commission. A validator can also only change its commission by a limited amount each day, and one active validator has a maximum commission below 10%. A parameter change alone would leave most validators at 5%, and unable to edit their commission at all until they reached the new floor.

Proposed change

The upgrade would:

  • set the minimum commission parameter to 10%;
  • raise any validator below 10% to 10%;
  • raise any validator whose maximum commission is below 10% to a maximum of 10%.

Validators already at or above 10% are unaffected.

Impact

  • Delegators to validators currently below 10% pay a higher commission from the upgrade height. At 5% today, the share of staking rewards a delegator keeps falls from 95% to 90%.
  • Validators below 10% move to 10% without needing to submit any transaction.

About this proposal

This is a signalling proposal. If it passes, the change is included in a future software upgrade, which will be proposed separately with its own upgrade height.

Target Onchain Date: 9th November 2026

1 Like

Good thing for all people