Blockchain & Cryptocurrency Glossary

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Validator Fee

1 min read
Pronunciation
[val-uh-day-tur feē]
Analogy
Validator Fee is like a service charge on a bank transaction—it’s deducted before you receive your net proceeds.
Definition
An alternative term for Commission Rate, the fee charged by a validator for their services in securing the network.
Key Points Intro
Validator Fee comprises:
Key Points

Percentage of rewards: Taken before delegator distribution.

Revenue for operator: Funds node operation and maintenance.

On-chain parameter: Defined in validator configuration.

Subject to change: May be updated with notice periods.

Example
A Solana validator charges a 5% fee on staking rewards; delegators receive 95% of the earned yield.
Technical Deep Dive
Validator fee is stored in the validator’s on-chain metadata. During epoch settlement, the reward module computes gross rewards, applies the fee, and issues two transfers: one to the validator operator account and one to each delegator proportionally.
Security Warning
Opaque fee structures can hide additional charges; prefer validators with transparent on-chain fee schedules.
Caveat
Validators may include minimum fees or flat fees in addition to percentage-based fees.

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