Thread by @EncryptionDog

1/ How do you choose the best validators in the #Cosmos Ecosystem?

A 🧵with my complete guide.

$ATOM $JUNO $OSMO

2/ You’re funds are at risk when you're (Superfluid)staking your #Crypto, which is why a Trustworthy validator is so important.

Their system needs to be running smoothly 24/7 otherwise your staked funds could be decreased.💸

3/ Try to have multiple validators in order to minimize slashing risk.

Slashing Risk = If your validator doesn’t uphold a 98% - 100% system uptime they will get penalized and a percentage of funds are taken away from everybody who stakes with them.💀

4/ Some validators have slashing risk protection which means they will cover all the costs if penalized.💵

This increases trust in that specific validator by a lot.

5/ Choose your validator OUTSIDE of the top 10.⚛️

If people stake a lot with 1 validator their voting power also grows larger.

We are here to create trustless decentralized systems.

That is why too much voting power for 1 validator is always a bad idea.

6/ Sometimes validators outside of the top 20 even offer extra bonuses to stake with them.💵

Keep that in mind. Could be profitable if they have a good deal.👀

7/ Try to go for a validator with 5% commission.📈

Validators contribute a lot to the #Cosmos network.⚛️

5% is a fair commission and neccesary in order to compensate their operation costs.💵

8/ 5% commission means that from all the staking rewards you earn, 5% of those earned staking rewards go to the validator itself.

This is worth it, because setting of a validator is a complicated and expensive task.🤯

9/ NEVER choose a centralized validator!🚩🚩🚩

For example, Binance Staking, Coinbase, Kraken etc.

If you choose those centralized validators you won’t be eligible for #Cosmos airdrops.

10/ If you pick a centralized validator you don’t contribute to the decentralisation of the project you’ve invested in. ☠️

Centralized validators also rarely contribute in Governance.🪦

11/ Validators always should have an uptime between 98% to 100%.⬆️

If they fall below this percentage you are at risk of getting your funds slashed.💸

12/ Choose a validator who has a high participation in Governance.⚛️

You can see all the relevant stats through this link:
hathornodes.com/resources/voti…

@HathorNodes , @0baseVC and @BlockscapeLab are currently at the top of Governance participation.

13/ One of the big problems within the #Cosmos Ecosystem is #IBC congestion. 🪢

Relayers are here to fix that problem. They temporary take the load off the network.

Some validators contribute a lot relaying power. Sadly it's still unpaid, but hopefully that changes soon.

14/ Try to support relayers as much as you can, since they are doing this work out of goodwill.👼

You can see how much each validator contributes to this problem through this link:
hackmd.io/@MsOdi1Z1Qn-gh…

15/ If somebody has a different validator than you, that doesn’t mean that validator is the wrong choice.

There are a lot of excellent #Cosmos validators out there.

This 🧵is just so you can spot the bad validators from the good ones.

16/ Hopefully this 🧵helped you guys a lot!

Go stake those funds and as always, let those assets work for you!⚛️🐶

I would appreciate it if you could show your support by retweeting and liking the first tweet!

https://twitter.com/EncryptionDog/status/1505973324165353482?s=20&t=i-7OxC8TED9sdJV4aq45aA

+ Follow me for more #Cosmos Content! ⚛️