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Solana Foundation Reshapes Validator Incentives to Encourage External Stake

  • The Solana Foundation is reshaping validator incentives to encourage external stake and enhance network decentralization.
  • The updated strategy involves removing three validators for every new one added, favoring operators with sufficient external backing.
  • The Foundation was criticized for sustaining a large portion of the validator network, with more than half relying heavily on foundation support.
  • By reducing stake concentration and foundation dominance, the Solana Foundation aims to improve the Nakamoto Coefficient, a measure of decentralization.

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