Proposal to Set a 5% Minimum Commission for MultiversX Validators

This proposal seeks to introduce a minimum commission rate of 5% for all validators on the MultiversX network. The primary goal is to ensure a sustainable, secure, and economically viable validator ecosystem by discouraging unsustainably low commission strategies that undermine long-term network health.

A minimum commission isn’t about limiting choice—it’s about enabling quality. It’s a way to build a healthier, more robust validator set, where participants have both the incentive and the resources to do more than just validate blocks. It’s time we rethink what sustainable, meaningful participation in a decentralized network really looks like.

Currently, 35 out of 130 active validators charge less than 5% commission, collectively managing approximately 1.7 million EGLD, or 11.2% of the total network stake. A growing number of stakers are reallocating their stake to validators with 0% commission, leading to a decline in stake and revenue for those with higher fees. This dynamic forces many validators to shut down, ultimately undermining the decentralization and resilience of the network. There’s a clear trend toward sustained growth in the low-fee segment. Without corrective measures, this trend is likely to intensify.

There are a few solid reasons why this could be a great move for the network:

  • Better validator performance: Introducing a baseline commission enables validators to sustainably invest in infrastructure upgrades, monitoring tools, and dedicated support. This leads to faster response times, fewer outages, and overall smoother network operations. When validators are better resourced, everyone benefits.

  • Stronger community contributions: Financial stability empowers validators to move beyond just keeping nodes online. It creates room to actively contribute through open-source tooling, educational content, onboarding programs, and ecosystem grants. These kinds of efforts build long-term value and attract more developers and users to the network.

  • Healthier network overall: When validators are properly incentivized, they can focus on quality and consistency, not just cost-cutting. This strengthens the core security of the protocol and results in better uptime, more accurate block production, and fewer missed opportunities for transaction finality—all essential ingredients for user trust and adoption.

  • Fairer governance: A more even distribution of stake leads to healthier decentralization, which is critical for transparent, democratic governance and network resilience in the long run.

Several leading blockchain networks have already adopted minimum commission models (Babylon - 3%, Cosmos - 5%, Osmosis - 5%, Injective - 5%, Celestia - 5%) with positive results in validator sustainability and network health. Would love to hear your feedback and discussion on this important topic.

Thank you for supporting a stronger MultiversX!

As a staking provider, I’ve never really understood why some SPs choose to undercut their service with ultra-low or 0% fees, when running a validator requires a real commitment (at least 1250 EGLD staked + Auction qualification threshold, infrastructure, monitoring, etc.). In most cases, it actually costs them more than if they simply delegated to an existing SP with moderate fees. It ends up dragging the network down rather than adding value.

That said, I believe a premium, high-quality SP, one that provides solid infrastructure, transparency, contributions to the ecosystem. Should be able to stand out and attract delegators on its own merits. Forcing all SPs to apply a minimum fee won’t fundamentally change the behavior of delegators who are only looking for the highest APR rather than quality of service. Education and differentiation are key.

Happy to see the discussion moving forward on how we can build a stronger and more resilient network!

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