1. TLDR
This proposal recommends reducing the active validator set from 50 to 20. The objective is to enhance validator profitability and foster a more balanced distribution of stake among the active participants.
2. Background
The Initia L1 currently operates with 50 validators in the active set. The active set is a governance-controlled parameter which sets how many validators participate in consensus. Validators outside the active set do not propose blocks or earn block rewards.
Validators on Initia (and other dPoS systems) are compensated through:
- A share of transaction fees; and
- inflationary staking rewards.
On Initia, staking rewards comprise 25% of the total token supply, with 5% of that pool released each year (i.e. 1.25% of the total INIT supply per year). Validators earn a commission (typically 5-10%) proportional to their stake weight.
Given a relatively low staking inflation rate and a moderately large active set, rewards are split among many validators, often not covering the cost of secure operations.
As of today, Initia’s top 20 validators comprise ~88% of voting power (top 11: ~66%; top 5: ~33%). This proposal seeks to adjust the active set to 20, in tandem with the Foundation’s Delegation Refresh Proposal, to support sustainable validator economics while maintaining security.
These adjustments are intended to:
- improve stake distribution within the active set and keep the network sufficiently decentralized;
- hasten upgrade coordination;
- provide better compensation to active validators; and
- reduce churn from low earners rotating in/out of the set, thereby limiting operational disruption.
For reference, active validator set sizes across other dPoS networks are as follows:
- Osmosis: 100
- Injective: 50
- Neutron: 20
- Hyperliquid: 4
As validator economics evolve over time, the active set parameter may be adjusted again through governance.
For clarity, please note this proposal does not affect the annual staking inflation rate in any way.
3. Proposal Details
In coordination with the Initia Foundation Delegation Program Refresh, this proposal seeks to adjust the active validator set from 50 to 20 after the re-delegations have taken place.
Parameter Changes
| Module | Parameter Name | Current Value | Proposed Value |
|---|---|---|---|
| mstaking | max_validators |
50 | 20 |
All proposed changes comply with Initia’s governance process and will be automatically executed on-chain once the proposal is approved and the voting period concludes.
4. Timeline
- T-0: This forum post goes live.
- T-9: Re-delegation process begins (per Initia Foundation Delegation Program Refresh).
- T-10: Governance voting period for set reduction begins.
- T-17: Voting period concludes; if passed, the reduced active set takes effects per chain rules.
5. Voting Details
- Yes: reduce the active validator set to 20
- No: do not reduce the active valdiator set to 20
- No With Veto
- Abstain