Intro

This proposal, if passed, will increase the minimum validator commission from 0% to 5%. This proposal will not execute the change immediately, the commission change would take affect during the next chain upgrade.

Reasoning

Very low commission rates are typically not profitable for validators and are only used to gain delegations from stakeholders. Once these delegations are gained there is nothing to stop the validator from increasing their commission rate. Most stakeholders do not typically undelegate once they have delegated to a validator and for this reason I believe the validator gains an unfair advantage over other validators who do not have a sizable delegator set. This creates a risk for validators with small delegations to be potentially running at a loss, is unhealthy and does not encourage decentralization.

Forum

Proposal was discussed in the forum https://forum.persistence.one/t/governance-discussion-proposal-16-feedback-and-action-points/175