100% commission for delegating to a Cosmos Validator
In these days of crazy volatility, simply holding assets as a strategy is quite risky. So instead of panic dumping some Atom I received for doing a job, I decided to stake it.
I spend a lot of my time transacting on hive, and by transacting, I mean staking a variety of tokens on the Hive second layer. This makes it quite easy to stake on the Hive blockchain because I'm very familiar with it.
Staking Atom in Cosmos network was slightly different from how you'd do it on Hive top layer. For starters, you're using a completely different type of wallet and will be interacting with a completely different kind of network.
Cosmos network is unlike anything I've actually used in crypto space. It does have some similarities with Polka dot but I never actually got around to use Dot for anything, so i can't speak much about it.
One thing that I think is absolutely important to note about Cosmos network is that it is a network of multiple interconnected blockchains. At the time of writing, there are quite a number of chains residing on the network.
From my understanding, these aren't exactly sidechains like the way have in Hive second layer. Each chain in Cosmos seems to be independent of the other, with the only connection being the foundational technology in the Cosmos network that they all rely on.
Staking Atom for the first time?
Cosmos has been described as the plug and play route to creating your own blockchain using the fundamental tech behind Cosmos network. So, technically speaking, at the very top or proceedings, we have the Cosmos network and Atom presiding over a variety of independent chains.
Now Cosmos is a proof of stake network, so Delegating/voting for validator or witnesses, as we call them on hive, secures the chain and delagators earn reward for the trouble.
Just like Hive, staking Atom has a lock period but the duration varies Hive has a 13 week unlock period, while in Cosmos, it is 21 days and doesn't split the payment like we have on Hive.
If like me, you're looking to try out a new platform and find yourself buying Atom on an exchange, you will need to move it out and into a blockchain wallet. Here's how to go about it.
- Download wallet: You can easily download a keplr wallet extension. it is a small file that just attaches to your browser. There's also a keplr mobile application, if that's your speed.
- Open the wallet, select the network and then transfer your Atom.
- Within Keplr wallet, you will see "stake" button, select it and then pick one of the validators to delegate to.
observations & Thoughts
- I noticed that Binance, Kraken and at least one other central exchange was among the top validators.
- I didn't query the network but having so many exchanges involved in governance isn't healthy
- Without considering the risks, I delegated to Paradigm validator which offers 100% commission. I think it is out of place but since I'm experimenting with loose funds, I'm willing to gamble
- Overall, it was as easy as voting for a witness on Hive and if you've been considering it, you could check it out.
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This is awesome, having an idle money isn't the best strategy. As for the exchanges involved in this, I'd say trying to stop that would be an act of centralisation, anyone can decide to be a validator so in this case, it looks as one of the many projects exchanges venture into...
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I like to keep my money working for me. Thanks for your valuable information.
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Yeah but don't use the same validator as I did. It turns out, the smaller the commission, the better.
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I believe the 100% is not APR, but the commission that the validator takes out of your stake... in your case, THEY are taking all of your staked earnings (which is around 15%).
No problem though. You can "redelegate" to a different validator that only takes 10% or 2%. I suggest Carbon Zero as they are active on Hive and bring lots of news about the COSMOS ecosystem. @carbonzerozone on Hive.
I got into the Cosmos a while back and although the markets have not been good to it with LUNA being an IBC chain... and with the markets melting down anyway... I am pretty confident that there is crazy growth happening here over the next year or two and $6 ATOM and $0.22 ComDex is going to be looked at in a few years jaw droppingly.
I hope this helps.
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Grateful for this. I found it odd that there was 100% commission and if you notice, I changed the title from APR to commission.
I'm going to sort it out tomorrow. Thanks for the info
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Ya, no worries... I would not want you to check your "inflating bag" in a month and realize you wasted a month of staking.
Thanks, I've changed it
Thanks for the shoutout!
Thanks for bringing the inside track onto what is up in the COSMOS to Hive.
This is something to learn, thank you for sharing.
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Hey you need to redelegate away from that validator. 100% commission means they take 100% of the staking rewards, and give you nothing.
My advice for validators is to skip past the top 20, and look down the list a bit. Also, there is a push to discourage 0% commission, as these people tend to not do anything much for the chain.
Whispernode is a good choice - and @nulledgh0st is a part of that team and will be coming back to LEO and HIVE to bring Cosmos content here, and 1% commission which is great.
Back make sure you redelegate ASAP. Paradigm are keeping all your staking rewards. Also, make sure you "redelegate", not unstake and wait the 21 days. You can move it without a problem.
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Done. I moved my stake to another with much lower commission
Thanks for the shoutout here!
I did want to throw a quick update here, as we will be raising our commission rate from 1% -> 5% in the next few days. The 1% rate was our "intro rate" for when we first joined the active set.
While this may seem like a dramatic raise, 5% is pretty much the "standard" across the Cosmos ecosystem, and raising our rates to this level will allow us to maintain our infrastructure, even during the bear market.
No one likes paying higher commission fees, but rest easy knowing that those comms are truly going to a team that cares, that contributes, and that won't let you down - we do a lot throughout the ecosystem, and currently are on a huge push to increase decentralization across all Cosmos chains through a new initiative (which I'll probably write a post about here soon).
Cheers!
There is a video about cosmos that I haven t seen its 100% yet! I think I must do it quickly! Thanks for your insight!
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Thanks to some of the people here. The validator is charging you 100% commission for delegating the token to them. So that means you will get zero rewards.
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