TL;DR
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ICON governance has voted to pass a new economic policy through a decisive network vote (Revision 25). This update introduces changes that aim to enhance decentralization, adjust rewards and penalties, and overall, fortify the network's resilience.
Historically, the ICON network utilized distinct buckets for distributing rewards between validators and voters. However, under the new policy, all rewards will originate from a single "bucket", simplifying the reward system and enhancing clarity for all participants.
The Role of Validator Commission Rates
At the heart of this update is the introduction of validator commission rates. Validators are now responsible for setting:
A commission rate: This is the percentage of the rewards they keep for their service before distributing the remainder to their voters.
A maximum commission rate: The cap on the commission rate they can charge.
A maximum commission rate change: The limit on how much they can adjust their commission rate each day.
These settings ensure a balance between rewarding validators for their crucial role in maintaining the network and providing fair returns to the voters who support them.
How This Affects Voters
For voters, the commission rate becomes an important metric when selecting a validator. A lower commission rate might mean higher rewards for voters, but it's essential to balance this with the validator's reliability, performance, and contribution to the network's health. The changes encourage voters to take a more active role in the governance of the network, promoting a culture of transparency and mutual support.
Tools and Resources
To aid voters in making informed decisions under this new system, several resources are available:
The ICON Tracker: Offers detailed information on validators, including their set commission rates and performance metrics.
ICON Discord Server: A place to discuss strategies, ask questions, and get insights from the community on the best validators to support.
FAQs on the New Commission Rates
Will changing commission rates affect my current staking rewards?
Changes in commission rates will only affect future rewards. It's important to stay informed and adjust your votes if necessary to maximize returns.
Can validators change their commission rates arbitrarily?
Validators are bound by the maximum commission rate and the rate change limits they've set, ensuring stability and predictability for voters.
How often should I review the commission rates of my chosen validators?
Regularly reviewing your validators' commission rates and performance is advisable to ensure you're optimizing your staking rewards.