Validator Commissions: What You Earn and How They Work in Proof-of-Stake

When you stake cryptocurrency on a proof-of-stake network, you’re not just holding coins—you’re helping keep the blockchain secure. In return, you earn validator commissions, the fees and rewards distributed to participants who validate transactions and create new blocks on proof-of-stake blockchains. Also known as staking rewards, these commissions are how networks like Ethereum, Polygon, and Cosmos pay people for running validator nodes. Unlike mining in Bitcoin, where you compete with hardware, staking relies on how much crypto you lock up and how well your validator performs.

Validator commissions aren’t fixed. They change based on network demand, total staked tokens, and your validator’s uptime. If your node goes offline or misbehaves, you can lose part of your stake—a penalty called validator slashing, a system designed to punish malicious or negligent behavior on proof-of-stake networks. Also known as staking penalties, slashing can wipe out hundreds or even thousands of dollars if you’re not careful. Most slashes happen because of simple mistakes: outdated software, poor internet, or misconfigured hardware. That’s why running a validator isn’t just about owning crypto—it’s about maintaining a reliable system.

Not everyone runs their own validator. Many users delegate their stake to professional validators through exchanges or staking services. In those cases, the validator keeps a cut of the rewards—that’s the commission rate, the percentage of staking rewards a validator charges for managing your stake. Also known as validator fee, this rate varies from 1% to 20%, and it’s one of the most important numbers to check before you delegate. A low commission doesn’t always mean better returns. If the validator has poor uptime or gets slashed often, you’ll lose more than you gain.

Validator commissions are the engine behind decentralized networks. They turn passive crypto holdings into active participation. But they’re not magic—every reward comes with responsibility. You need to understand how your validator works, what risks it faces, and how fees impact your earnings. That’s why the posts below dig into real-world cases: from Ethereum staking penalties to how much you actually earn after fees, and why some validators disappear overnight. You’ll see what works, what doesn’t, and how to avoid losing money on something that’s supposed to make you money.