Cause of the recent node upgrade issue the fee structure is modified :
- 0% fee until 15th october
- 0.10% fee whatever the rank from 16th to 31st October
In order to be competitive and stay fair here is the fee structure that will be followed as long as the number of validators stays at 17 (in case of an increase in the number of validators, a new table will be provided). Any change of this table will be notified here, 37 days prior to the change.
Why are fees so low and increase over rank?
They are low because it’s more damaging to be out of top 17th than to not have commission. They are low too because I am aware I am not a famous corporation and I need to be attractive to you. Validator choice is a risk/reward decision, if the risk seems higher because I am not known by some of you, I need to increase the rewards.
The fees increase because running a server costs money and being in higher tier is the price insurance for not being kicked out of the first 17 positions. You will notice that the max commission is still low, in 12th position I will still be the cheapest validator (as of Sept 13th). Maximum commission is 2.99% (in the 0.0001% probability of being ranked first).
Why not lottery or giveaway?
Lottery and giveaway from higher fees validator consist in giving back some of their higher commissions to stakers. They usually give back only a small portion of their commission. This will give you less swth over the long term than simply staking with a low-fee validator.
Okay but what if you don’t care because you simply like gambling?
Then gamble 🙂