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!