Validator Commission
Validator commission is the percentage of staking rewards that a node operator charges to delegators in exchange for running the infrastructure and maintaining network security. This fee structure is a core component of the economic design of proof-of-stake networks.
It allows professional operators to cover operational costs such as server hosting, security maintenance, and software updates. Delegators choose validators based on a balance between commission rates and the reliability or performance of the node.
High commissions may be justified by superior uptime and a history of consistent block production. Conversely, lower commissions are often used as a competitive strategy to attract more stake.
This creates a market-driven environment where validator service quality is priced through commission models.