The other day, I delved a bit into the Cosmos ecosystem and made a minor error. Due to this error, my publication turned out to be mildly misleading.
In the publication, I talked about the process of staking Atom in cosmos. I described the process and also showed the server I delegated to.
In Cosmos network, what we know as witnesses on hive are referred to as validators. When you decide to stake your Atom, you can then pick a validator to give your Atom voting rights to.
Keep in mind that the Atom is still yours but it requires a 21 day waiting period before staked Atom can be taken out. Naturally, this waiting period is important to protect the project from an attack.
Anyway, in my publication, I also mentioned delegating to a witness that "offered" 100% commission. It turns out my decision was a real howler because it actually meant that the validator was taken 100% of my reward for voting.
Fortunately for me, there's a growing Cosmos community within Leofinance, and they reached out to me through comments. I learnt that if I want to earn staking rewards, I'd have to transfer my delegation to another validator.
You're probably thinking that this means that I'd have to wait for 21 days and you'd be right to think so, because that's what I thought would happen.
It turns out that in Cosmos Network, you can simply just transfer your delegation from one server to another without unstaking. So instead waiting three weeks, I just did it instantly.
Delegated to an exchange
I figured that if delegating to a validator that takes 100% commission is the worst end of the spectrum, then my rewards will improve as commission tend to zero.
I also adapted some of my hive knowledge into Cosmos to pick my next validator. The server I'm voting for needs to have very low commission and should be higher up in the ranks.
My thought process was based on the fact that the top 20 witnesses on Hive are the prime validators on the chain. So, I figured it would be something of that nature on Cosmos.
Ironically, the validator that had all my requirements in one place was Binance staking.
As I mentioned in this post, a number of central exchanges have strong presence on Cosmos and I think that's worrying. I mentioned here that I think exchanges will toy with the safety of a network at their own benefit.
At the end of the day, I staked for Binance because it is one of the top ten validators. However, I'm open to note information about the most profitable ways to approach validator selection, as I continue my journey through the Cosmos
Posted Using LeoFinance Beta
