The number of validators on the Solana blockchain is plunging, Cointelegraph reported on Jan. 29.
Solana validator nodes have fallen 68 percent to 795 from 2,560 in March 2023. Rising operating costs and a 0 percent fee policy by large validators are cited as key reasons.
Solana node operators are leaving the network as profitability worsens. An independent validator, Moo, said, "I joined as a validator to support decentralisation, but economic realities are threatening sustainability."
The decline in validators has also affected the Nakamoto coefficient, a measure of Solana’s level of decentralisation. The coefficient has dropped 35 percent to 20 from 31 in 2023. That means the staked Solana supply is becoming more concentrated, Cointelegraph said.
Node operating costs are also a heavy burden. Even excluding server costs, validators must hold at least $49,000 worth of Solana (SOL) tokens in the first year and pay 401 SOL each year in voting fees.
Chi-gyu Hwang
delight@d-today.co.kr