Proposal: Minimum Validator Commission Rate - 5%

Governance & Proposals
22

CoreWeave validator supports this proposal for the same reason as Ceres, SuperKing, and and the rest of the validator community interested in running high availability validator nodes without forcing zero sum brinksmanship in the validator community.

3 Likes
23

Thanks for putting this thread together for everyone @Rebel_Defi! :blush:

Following up from the discussions within the Validator Discord and Terra Rebirth TG, Ceres Ventures / Terrafirma NFTs supports this proposal on Terra2 (phoenix-1). That being said, there has since been a second proposal suggesting a shared minimum across all validators, which we think is also a pretty darn good idea.

However, in either case, we also support an ammendment that re/delegation restrictions be reset after the implementation of this update, allowing anyone who staked to a 0% validator be able to adjust their delegations accordingly (to avoid any situation where people feel it was a “bait and switch”).

"Why 5%?": While Agora was still being prepared, I created a poll within the Validator Discord asking what they believe the minimum commission should be (options ranged from 0-10%).

At time of writing, over 81% of votes cast on this Discord validator poll are for “5%”, showing strong unity within the Terra Validator Community on this matter :heart:

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24

I support this proposal. The main reasons for that are already posted in this thread. Also, several Cosmos-based chains have already implemented this minimum commission rate successfully.

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25

Hey, just wanted to say the second proposal is for a shared commission rate, not a shared minimum commission rate

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26

50,000 luna at 5% on 1mil

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27

I suggested 5% on this proposal simply to have a hard number to base discussions around. Sounds like you’ve been a bit more scientific!

I love the proposal from @etienne-napoleone about a “shared commission rate”. Seems more elegant than a fixed minimum rate. I would vote for it.

My priority is to get rid of 0% being an option as this goes a long way to preventing corporate validators joining the chain and subsidising a 0% rate from their other operations. I struggle to see how this benefits Terra, long-term. I’m not against corporate validators, but we don’t need corporate zombie validators which there were on Terra Classic.

I just want to see tons of great validators doing amazing things for the Terra community.

4 Likes
28

Let me get it straight, you want to burn one LUNC for every staked LUNA, when every LUNC hodler with 1mil LUNCs was airdropped circa 15 LUNA. That doesn’t compute now, does it!

To make it fair and worthwhile the ratio should be at least 100k LUNC burned for every staked LUNA, and should be across validators not a single validator’s burden.

We might not agree but then again at least you spoke up and made a counter-proposal so you have my gratitude for that.

29

Looks like this proposal will be supported by a majority of validators. So what are the next steps here? Should we put this proposal for deposit?

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30

Update: The validators have been told that as implementing this would would require a coding change, it’d be appreciated if we could hold off hold off raising a proposal for a few more days while the devs get a few other ducks in a row first.

Personal Opinion:

In the meantime, to avoid any situation where it could be seen as taking advantage of a technical delay, I believe that all of the validators that support the 5% minimum should begin moving towards that minimum ahead of time. :blush:

1 Like