[PROPOSAL #12][ACCEPTED] Are validators charging 0% commission harmful to the success of the Cosmos Hub?

Hub Proposals Signaling/Text
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Forbole has voted NO in the proposal 12. The transaction can be found here.

My partner @terence has posted an article explaining our views on the downside of setting up a minimum commission fee at this stage.

I would like to add some more points here why we don’t think 0% commission is harmful to the success of Cosmos Hub.

  1. It should be a free market. 0%-100% is all business decisions any validators. Even if we don’t allow 0% commission, or have a non-protocol guideline of a suggested minimum commission, validators can always have some kind of rebate or even have a negative commission for their delegators. The minimum commission will just be the new 0%.

  2. Inflation is not reward, it is a punishment to the ATOM holders for not bonding their ATOMs to the network. At the current stage of Cosmos Hub, there is no transactions between networks and it is not generating any economic value. Why we have to dilute the value of the ATOM of the holders? All those so-call yield, staking rewards, etc on wallets and websites are misleading. If we take the current inflation at 7.65%, the effective inflation is about 7.65 x 6.5s / 6.9s = 7.2%. With the current delegation ratio at 70.79%, the number of tokens inflated for a delegator will be around 10.18%. With this amount, if we really need to say a delegator has “rewards”, it will be just the extra 2.98%. When a validator charge a commission at 10%, it’s already 1/3 of the “rewards” of the delegator. There is actually not much room for validators to make any interesting marketing strategies on this new business. Why we have to limit our creativities and possibilities?

  3. There are quite some validators are charging 0% commission besides Forbole, Sikka and Sparkpool.

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Among these validators, we can even see some familiar names. These validators still not gaining much delegations, does 0% commission would really affecting much on delegation distribution and be harmful to the success of Cosmos Hub? Or actually delegators are wise enough to choose reliable validators?

Would the downside of setting up a minimum commission more harmful? Or allowing flexibility for a free marketing more harmful?

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