| cip | 44 |
|---|---|
| title | Adjust Validator Commission Bounds |
| description | Increase maximum validator commission to 60% and minimum commission to 20% |
| author | Callum Waters (@cmwaters) |
| discussions-to | https://forum.celestia.org/t/cip-adjust-validator-commission-bounds/2217 |
| status | Final |
| type | Standards Track |
| category | Core |
| created | 2026-01-14 |
| requires | CIP-31, CIP-41 |
Abstract
This CIP proposes adjusting validator commission rate bounds by increasing the maximum commission from 25% to 60% and raising the minimum commission from 10% to 20%, effective immediately upon the next major network upgrade.
Motivation
Maintaining a healthy and sustainable validator network requires allowing validators to charge commissions that adequately compensate them for their services. The current bounds, established in CIP-31 (25% maximum) and CIP-41 (10% minimum), are insufficient for validators to operate sustainable businesses while providing high-quality infrastructure and services to the network.
Increasing these bounds provides validators with greater flexibility to price their services appropriately while delegators retain full control over their delegation decisions.
Specification
The key words “MUST”, “MUST NOT”, “REQUIRED”, “SHALL”, “SHALL NOT”, “SHOULD”, “SHOULD NOT”, “RECOMMENDED”, “NOT RECOMMENDED”, “MAY”, and “OPTIONAL” in this document are to be interpreted as described in RFC 2119 and RFC 8174.
- Increase Minimum Commission Rate: Raise the minimum validator commission from 10% to 20%.
- Increase Maximum Commission Rate: Raise the maximum validator commission from 25% to 60%.
- Automatic Migration:
- Validators with commission below 20% MUST be automatically adjusted to 20% during the upgrade.
- Validators with max commission rates below 60% MUST be automatically adjusted to 60% during the upgrade.
- Commission Change Rules: Existing commission change rate limits remain in effect.
Parameters
| Parameter | Current value | Proposed value | Description | Changeable via Governance |
|---|---|---|---|---|
staking.MinCommissionRate | 0.10 (10%) | 0.20 (20%) | The minimum commission rate validators can set | No |
staking.MaxCommissionRate | 0.25 (25%) | 0.60 (60%) | The maximum commission rate validators can set | No |
Rationale
These adjustments support a healthy validator network by enabling validators to charge commissions that reflect the true cost of providing professional, secure, and reliable infrastructure. Higher commission bounds allow for diverse validator business models while delegators maintain the freedom to choose validators based on their value proposition. The market naturally constrains excessive commission rates as delegators will favor validators offering better terms.
Backwards Compatibility
This change requires a coordinated network upgrade. Validators with commission rates below 20% will be automatically migrated to 20%. The existing MaxChangeRate parameter continues to limit how quickly validators can adjust their commission rates.
Security Considerations
Delegators retain full control over their staking decisions and can redelegate at any time. The existing MaxChangeRate parameter prevents validators from rapidly increasing commissions. Market dynamics incentivize competitive commission rates, as validators with excessive commissions will struggle to attract delegations.
Copyright
Copyright and related rights waived via CC0.