Solana Foundation Reshapes Validator Incentives to Encourage External Stake

Solana Foundation Reshapes Validator Incentives to Encourage External Stake

Research highlighted that many Solana validators rely heavily on foundation support, with up to 90-100% of their funds coming from the foundation.
The updated strategy aims to improve the Nakamoto Coefficient, a key decentralization measure, by reducing stake concentration and foundation dominance.

In an effort to boost network decentralization, the Solana Foundation has rolled out a new validator strategy. It aims to transition dependency from foundation deployment to validator independence.
How Does Solana Foundation’s New Strategy Work?
Under the updated framework, the Foundation will adjust its Delegation Program by removing three validators for every new one added. It’ll work only when those removed have received foundation support for over 18 months and have attracted fewer than 1,000 SOL in non-foundation stake. Thus, it is designed to favor operators that can keep sufficient external backing.
Meanwhile, in a post on Discord, Ben Hawkins, who leads the staking ecosystem

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