I might be shooting myself in the foot (my Validator’s Commission Rate being set at 2%) but I feel for the benefit of the Network it’s worth having a minimum commission rate of 3-5%.
This will help provide network stability and stop 0% validators driving commissions down. It also ensures Validators are earning enough to support secure and stable validation.
My initial thought was that a rate of 3% would be a good starting point but after discussions in the discord group, it appears a rate of 5 % is more popular.
I’m happy to put a proposal together but let’s discuss here first…
Interesting thoughts on the subject. I think most networks implement an only commission mechanism, it seems fair in the sense that you earn what you provide, but that’s more the case of a PoW network and not a PoS network. An only commission it doesn’t say much about how much a validator is earning, it’s related to the staked amount. I could set a 20% commission and earn 10$ a month, or set a 1% with millions of stake and earn a few thousands a month.
The fixed amount makes sense for me, specially if you have to meet some requirements and/or SLA’s. Let’s say that you would earn a fixed amount on each of the service requirements you meet:
300$ for a validator
200$ for each sentry node
100$ for monitoring
500$ for 8/5 technical support
2000$ for 24/7 technical support
300$ for community support
300$ for marketing diffusion (blogs, videos, telegram channels)
100$ for updating on time
Quantities are set just an example to illustrate the idea.
The thing would be how to enforce those SLA’s in a permissionless fashion, and not on a individual contract one.
We support a 5% minimum. It seems to be a good, easily implemented solution for the interim. We are also open to exploring those interesting ideas on fixed costs, as Will and Blockscope mentioned. The cost of storage space increases over time as block height grows, so flat rate costs might need to increase on a scale related to block height.
