Validator Commission

Validator commission is the percentage or other share of staking rewards that a validator retains for providing infrastructure and performing network duties. It is commonly applied to rewards associated with delegated stake.

For example, if a validator sets a 5% commission, this does not normally mean that 5% of the delegated principal is transferred to the validator. It generally means that the validator retains a portion of the relevant rewards. The exact calculation depends on the protocol.

Commission is only one parameter when comparing validators. Reliability, uptime, operational history, stake concentration, commission-change rules, and exposure to slashing can also matter.

Some protocols impose minimum or maximum commission rates and rules governing changes. Users should therefore consider not only the current rate but also the conditions under which the validator can change it.