How to select a validator on Polygon?
When choosing a validator to delegate your stake to, it is important to consider a variety of metrics in order to make an informed decision:
Validators Self-Staked balance: A validator that has a high amount of self-staked tokens likely has more incentive to continue operating their services as they have more to lose than those with low self-staked balances.
Commission Rates: The commission rate, also known as the fee, is the percentage of your rewards that a validator retains for themselves as compensation for providing their services. In the world of staking, validators may charge a wide range of commission rates, from very high to near zero. It is important to note that a commission rate of around 3-5% is considered standard and reasonable, as it allows the validator to cover their operational costs and provide top-notch service to their delegators. However, it's worth noting that validators have the ability to adjust their commission rates at any point in time, and it's essential to keep an eye on any changes that might happen. To make an informed decision, it's important to take the commission rate into account, but also consider other important factors such as the validator's historical performance, the size of their delegator pool, their uptime and availability, and their security measures to ensure the protection of your stake.
Number of Users: A large number of delegators is often seen as a positive sign of sentiment towards a validator. However, if a validator has a smaller number of delegators it does not necessarily mean they are offering bad quality services - it may just be lesser known. Checkpoints signed: ‘Checkpoints Signed’ reveals if a validator has missed any checkpoints or went offline. 100% is very good, meaning that the validators on this page have not missed a checkpoint or went offline. Anything less than 100% in this column will result in less rewards and possibly even slashing rewards.
Network Share (Stake): When selecting a validator, it is important to avoid both those with the highest and lowest network shares. Delegating to highly popular validators increases the risk of centralization within the network, as they will have more influence in governance and a greater proportion of block production. On the other hand, delegating to validators with low network shares can be unprofitable and increases the risk of them discontinuing their services, resulting in a loss of delegation. A balanced approach with moderate network share is recommended.
Value Add to the Ecosystem: When choosing a validator, consider looking for providers that offer additional services to their delegators, such as tax reporting tools and explorers. These value-added services can be an indicator of a validator's long-term commitment and dedication to the network. To view the extra services offered by staking providers, check their profile on our website and scroll down to the bottom of the page for more information.
Additionally, it may be valuable to research the validator's overall reputation in the community, as well as their experience and expertise in the field of blockchain technology. Ultimately, it is crucial to carefully evaluate all of these factors in order to select a validator that is both trustworthy and capable of maximizing your returns on investment.