Signal a 10% Minimum Validator Commission
Osmosis proposal #1066: This proposal proposes raising the network minimum validator commission from 5% to 10% in a future software upgrade, and bringing eve...
Yes
65%
No
0%
Abstain
35%
Veto
0%
If passed
No machine-readable execution payload was received. The effects are unknown; the description alone cannot confirm that nothing will execute.
Original Proposal Text
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. **Forum Post:** [https://forum.osmosis.zone/t/signal-a-10-minimum-validator-commission/4189](https://forum.osmosis.zone/t/signal-a-10-minimum-validator-commission/4189) More details: Not Used