Solana Foundation Shifts Validator Strategy to Promote Self-Sufficiency

Summary

The Solana Foundation is introducing a new policy for validator onboarding and offboarding to enhance network decentralization and reduce dependency on foundation support. For each new validator in the Solana Foundation Delegation Program (SFDP), three validators will be removed if they have been eligible for delegation for over 18 months and have less than 1,000 SOL in outside stake. This initiative follows a decline in foundation-delegated stake. Concerns were raised about the reliance of many validators on the foundation, with claims that most receive 90-100% of their staking funds from it. Research indicates that if the SFDP were discontinued, around 57% of validators might struggle to remain profitable. However, promoting self-reliance among validators is viewed positively for Solana's decentralization, potentially increasing its Nakamoto Coefficient, which measures stake distribution among validators.