Retroactive post to discuss prop 76 as the original proposer did not go to the forum first.
If the original author is reading this, please comment with more detail on how you believe this should enacted. Are you suggesting validators set a 5% minimum informally, or that devs add this as a parameter in the software?
Also please use the forum prior to posting in the future so we have a chance to ask some of these basic questions before the post goes up. I anticipate some validators may vote no simply because they didn’t have a chance to discuss on the forum first, which I’m sure was not your intention.
Reasoning: Competition drives innovation. Innovation drives sustainability and token value.
We should build a community where validators truly innovate and create value for delegators, rather than relying on their 0% commission to attract delegators. Allowing unsustainably low commission rates promotes spam and will not motivate validators to create innovative solutions for delegators, potentially stagnating the development of the Cosmos Network.
Having a 5% minimum commission ensures that validators are incentivized to innovate to acquire delegators. This will also encourage greater decentralization on the Cosmos Network as validators compete for delegators based on merit (rather than 0% commissions). Additionally, it is necessary to provide proper incentives to validators for their work running and securing the Cosmos Network, especially during crypto winters.
If this proposal is approved, the Cosmos Network would be updated so that:
- Existing validator nodes with commission rates set to less than 5% will have their commission automatically updated to 5%
- New validator nodes will have a floor commission rate of 5%