What is the Commission Rate?

The Commission Rate is the percentage of staking rewards that a validator takes as a fee before distributing the remaining rewards to its delegators.

For example, if a validator has a 10% commission rate and a delegator is due to earn 100CHZ from this validator, then 10 CHZ of the 100CHZ due to the delegator is kept by the validator as a commission fee for providing the infrastructure and validator service so the delegators don’t have to. 

Key Points:

• Set by the validator – Each validator decides its own commission rate.
• Affects delegators – Higher rates mean delegators receive a smaller share of rewards.
• May change over time – Chiliz Chain allows validators to adjust their commission rates, but often within predefined limits.

Delegators should consider the commission rate, among other factors, such as reliability, voting power, and past performance, when choosing a validator.