As a validator I have noticed that the only way I can increase the amount of delegation I get is to be at the top of the rankings within Terra Station. It doesn’t matter how much I help in telegram or how many brainy Luna tweets I put out. If you are not ranked at the top, your delegation numbers will fall. This makes sense and that is how I would choose my validators as well.
The commission charged now effects this and any validator raising commissions will see an immediate drop in rank and delegation numbers. I have watched with sadness as one of the biggest community supporters (smartstake) drop over 20% of his delegation when he started charging commissions after 6 months of 0 commissions. He now doesn’t rank high enough in Terra Station because of his commissions so it is unlikely he will be able to grow much and will likely see those numbers continue to slide.
I am set to raise my commissions soon and under the current system I know what will happen. I have a much smaller delegation and have hefty bills for my enterprise grade node.
The current system is a race to the bottom and will lead to further centralization of voting stake. Only the absolute cheapest infrastructure or biggest whales and insiders will grow their delegations with 0% commissions and we are already seeing that.
To add to the problem, the validators that were selected to be the anchor validators (insiders and investors?) get 6% commission but very few people even realize this.
I think we need to find a way to make it profitable to run high quality validators because the alternative is massive centralization and poor network infrastructure.
I propose we make the network minimum 6% to match the commissions anchor validators are already receiving.
I run the LunaOrbit node and this is my first post on Agora!
Thanks for your consideration,