How to Choose a Validator on Terra

  1. Amount of Rewards: Validators help accrue rewards on delegated tokens by ensuring uptime is maintained on those nodes; a lower uptime or higher validator commission might result in less rewards accruing to the delegated tokens.
  2. Slashing of Stakes: In the event that a validator a) double-signed blocks or b) displayed an extended downtime, the blockchain can slash up to 30% of the staked Luna tokens.
  3. Blockchain Integrity: Under Terra’s Proof-of-Stake consensus model, voting power is determined by the amount of Luna tokens staked to the blockchain. For this reason, if the staked tokens are not sufficiently distributed across the different validators, bad actors could mount an attack on the blockchain by accumulating more than ⅔ of the staked funds or by targeting high-staked validators for hacking.
  4. Voting Power: If a validator accumulates too much voting power, they could have an outsized influence on the governance process which could enable them to vote on governance proposals in a manner detrimental to the interests of the Terra community at large e.g., first proposing, and then approving proposals that are specifically designed to benefit themselves since delegators by default inherit the vote of their validator if they don’t vote.
  1. Uptime — this value indicates if a validator was non-responsive or couldn’t be reached for more than an amount of time; a consistent and functioning validator should have a value close to if not at 100%.
  2. Commission — this value indicates the amount of commission retained by the validator in return for helping you accrue the rewards from your staked tokens. In general, the lower the value, the better since you would be giving away less of your rewards. However, in the longer run, if the rewards are insufficient to compensate for the validators’ work, there is a risk that the validator may fail to perform its function satisfactorily and you could put your stakes at risk of being slashed so a commission rate that is unsustainably low may also lead to issues subsequently.
  3. Voting Power — this value indicates the proportion of staked tokens this validator has accumulated, including both delegated and self-owned tokens. As much as possible, a more decentralised set of validators is more secure for the blockchain in the longer term and hence, you would want to choose a validator with a lower voting power to avoid centralisation of powers into just a handful of validators.
  4. Self Delegation — this value indicates the proportion of self-delegated tokens in proportion to those staked by other wallets to the validator. This is otherwise known as having “skin-in-the-game” since any slashing risk will also affect the validator’s own stake. In general, a validator with a higher proportion of self-delegated tokens is more attractive as they have more “skin-in-the-game”.
Validator Selection Process
Top 5 Validators on Stake ID
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