Luna Classic Station
Classic Nodes validator

Commission rebate

Terra Classic requires a minimum validator commission. Classic Nodes can keep the chain-required 2.5% setting, withdraw that commission, and rebate it back to eligible delegators using transparent on-chain transactions.

How the rebate works

1. Commission is collected

The chain distributes staking rewards and applies the validator commission automatically. This happens at the protocol level and cannot be set below the active minimum.

2. Delegators are snapshotted

Classic Nodes can snapshot all active delegations at the rebate cutoff time and calculate each delegator's share of the validator stake.

3. Rebates are sent back

The withdrawn commission is sent back to eligible delegators in proportion to their active delegation, with transaction hashes published for verification.

This is a rebate model, not a protocol-level 0% commission. Delegators still see the required validator commission on-chain, then receive a separate rebate payment when distributions are run.

Rebate calculator

Your estimated rebate

10,000 LUNC

Stake share: 1.0000%

Formula

refund_to_delegator =
  total_commission_withdrawn
  x delegator_stake
  / total_validator_stake

Operational runbook

  1. Withdraw Classic Nodes validator commission.
  2. Snapshot all active delegators and delegation balances at the cutoff block.
  3. Calculate each eligible delegator's proportional rebate.
  4. Roll very small rebates into the next cycle to avoid wasteful transaction fees.
  5. Send rebate payments on-chain and publish the transaction hashes.
terrad tx distribution withdraw-rewards \
  terravaloper1gr6yd5ytvwkqw846hka6pypcgx3c3zkj7s7x30 \
  --from classicnodes \
  --commission \
  --chain-id columbus-5

terrad query staking delegations-to \
  terravaloper1gr6yd5ytvwkqw846hka6pypcgx3c3zkj7s7x30 \
  --chain-id columbus-5 \
  --output json

Public verification

Each rebate round should publish the cutoff block, commission amount, eligible wallet list, calculated rebate amounts, and payment transaction hashes. This gives delegators a direct way to audit the rebate without trusting a private spreadsheet.