The economic part of any project plays an essential role in determining whether or not the ecosystem survives and stays healthy in the long run. Unfortunately, the current situation regarding validators who lowered their commissions to 0%, slowly makes the economy unhealthy and less decentralized.

People Don’t Think About Decentralization

On July 23, one of the top-5 Cosmos validators has rolled out a voting proposal which urges everyone to take measures regarding an increased number of validators who intentionally lower their fees, so that they could attract more people who want to stake Atom. But in all things, there’s a price to pay and often it’s not bearable for the community in the long run. During the past few months, the situation around top validators has dramatically changed, and a few of them decided to lower commission to 0%.

Following this situation, many other validators decided to join the “non-commission team,” while pushing everyone else to lower their fees to the detriment of their operations. It has paved the way to the unhealthy perspective of centralization increase, which makes the Cosmos Hub more vulnerable. Despite the benefits that ordinary people have from staking with the zero-fees services, small projects may suffer from inability to cover their expenses.

Everyone Should Find A Middle Ground

We think that the market participants are free to choose how they act in the current environment, but at the same time there definitely should be a balance, so that the network can sustain itself in the long run. Small and middle-sized projects worry about financial prospects that directly affect their business activities, and also this situation may negatively affect the decentralization. Considering this situation, we believe that everyone has to come to a mutually beneficial agreement so that even small projects could survive in pursuit of the Cosmos ideology.

By implementing these simple things, the network can have a bright future, staying fully decentralized. Moreover, by supporting less known validators users are significantly affecting their ‘financial health,’ thus boosting the stability of the network. If we take into account everything mentioned above, it can be said that the community has to play ‘a long-term game,’ instead of concentrating on immediate gratification. With all our resources, we are actively supporting the Cosmos community and strive to provide a reliable staking service on the market.

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