Staking Cosmos is one of the best ways to generate passive income with a small budget. But looking at the list of 180 Cosmos validators could be a bit overwhelming. This article will cover the top 10 Comos validators for June 2023 and some insightful tips for selecting a Cosmos validator.
Cosmos Staking & Validators
In an industry where projects often emerge and fade away quickly, finding truly valuable ones remains an exceptional pursuit. However, amidst this volatility, Cosmos continues to bask in the spotlight.
Cosmos offers an interoperable blockchain ecosystem, allowing seamless communication and interaction between different chains within the network. Staking ATOM tokens secures the Cosmos Hub and enables users to connect with other chains, facilitating cross-chain transactions and interoperability.
Staking Cosmos is a great way to earn additional rewards and contribute to the network's security. Alternatively, through delegating their ATOM tokens, individuals engage in the governance of the broader Cosmos network. Validators and delegators play key roles in this process.
Validators are responsible for validating transactions, creating new blocks, and ensuring the integrity and security of the Cosmos Hub. They are selected based on their reputation, performance, and stake size. Validators with a proven track record of reliability and security measures are preferred choices for stakers.
Delegators, on the other hand, are ATOM holders who delegate their tokens to validators. By delegating, they contribute to the voting power of the validators they choose, enabling them to participate in the governance process. Delegators receive a share of the rewards earned by validators they delegate to, proportionate to their stake.
How to Choose a Cosmos Validator
Staking participants can navigate Atomscan's validator board to get all the necessary information. As of June 2023, Cosmos has 180 validators, and 68.69% of ATOM are currently staked.
Here are some areas to focus on when you choose a Cosmos validator.
- Slash: Validators with slash protection mechanisms prioritize security operations and safeguard the staked funds of their delegators. This protection helps prevent the loss of funds due to the misbehavior of either the validator or other validators they are associated with.
- Uptime: Validators with constant uptime ensure the network runs smoothly. Find validators with a proven track record of high availability and a commitment to maintaining 100% uptime. These validators usually have a reliable infrastructure and monitoring systems, providing a stable and uninterrupted service.
- Top validators: It's always best to diversify your stake to more than one validator. You can consider supporting validators outside the top 25 in terms of voting. Distributing power among a larger group of validators enhances the network's security and decentralization.
- 100% commission: Validators charging a 100% commission remove all the rewards, leaving delegators with nothing. Selecting validators offering a fair commission rate is important, benefiting both the validator and the delegators.
- Self-bonded rate: Validators with a large stake in their own funds demonstrate commitment to the network's best interests. They are more likely to act responsibly and uphold network security.
- Active engagement: Reach out to the validators you are considering. Engage in discussions, ask questions, and understand their perspectives on governance proposals. This not only aids decision-making but also fosters clear communication and community understanding of proposals.
- Do your own research: While the provided suggestions are a good starting point, conducting your own research is crucial. Check validators' websites, review their performance history, and assess their reputation in the community. This helps you better understand each validator and make the right decision.
In addition, we recommend that you should join Cosmos channels (our favorite is Cosmos Reddit) to learn from other community members.
Top 10 Cosmos Validators - June 2023
ATOM staking's APY is 9.7% on average, minus the validator's fee. For example, if you delegate your tokens to a validator with a 10.28% commission rate, your net rewards are 89.18 ATOM.
Here is our list of the top 10 Cosmos validators for June 2023:
- Commission: Validator's fee for staking rewards.
- Max commission: Maximum fee a validator can charge.
- Staked: Total tokens delegated to a validator.
- Voting power: Influence in network consensus and governance.
The 0% commission may seem attractive, but it's noteworthy that the select validator highlights that this rate will only be valid until 2025.
Typically, you want to avoid validators with a 0% commission rate as it is unreasonable. Validators need resources to operate efficiently, so a reasonable commission helps them cover their costs and provide quality services.
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