At this moment about **65% of Polkadex network is in hands of 9 large operators** running **130+ nodes**.

Polkadex servers cost ca. $40- $50 with PDEX at $ 1,25 so validators need 7% - 8% to pay server fees. 

Some large validators with 15+ or 25+ nodes dropping their commision to 0% or 1% and running their nodes at a loss in order to capture more nominations. Some small validators running one or two nodes have been running their nodes at a loss for months and won't do ir forever and will eventually stop validating and their spots will be taken by these large operators making Polkadex even more centralized.

We have decided to submit a proposal to set a **min. 5% commission for validators** as we think it will benefit the whole Polkadex network:

- All **validators** will have enough fees to pay for their servers and validators will have to bring more to the table than just drop their commission. 
- **Nominators** will have a much stable enviroment as validators won't we tempted change their commisisons back and forth to capture nominations and the APY won't be much affected. Nominating validators with 5% commission vs 1% commission it's not earning 4% APY less. For example this two validators APY are 33,57% and 32,12% which is just 1,45% difference at it allows small validators to pay their server fees and increases the decentralization of the network.

![](https://i.postimg.cc/m2Q5Tr28/photo.png)


All this was recently discussed in a Kusama proposal with a 10% min. commission you can check in this link.
[https://kusama.polkassembly.io/referenda/79](url)

PolkaWorld proposes a social contract with the Polkadot treasury for operations and maintenance from June to August 2023 with main goal to continue supporting the Chinese community's education on Polkadot. Activities include publishing articles, hosting meetups, conducting online broadcasts, producing educational videos, and interviewing ecosystem teams. PolkaWorld emphasizes its extensive collaboration since 2019 and highlights past contributions, such as article publications and event hosting. The proposal underscores a commitment to regular reporting and provision of review processes for accountability.

Reward 20 collators of the Polkadot System Parachains for 2 month operational expenses. The tip amount varies from 59-512 $DOT.

- Currently, a few big operators control most of the Polkadex network.
- Some validators are running their nodes at a loss to get more nominations.
- A proposal has been made to set a minimum 5% commission for validators.
- This will help all validators pay for their servers and make the network more stable.
- It will also prevent constant changes in commission rates and benefit nominators.

Set 5% min commission for validators

No Active Proposals