Prop 208: Reduce Active Validator Set

Summary

The Nolus network currently supports a maximum of 50 active validators, with 47 actively participating in network consensus. To enhance network efficiency and optimize block times, we propose reducing the maximum size of the active validator set from 50 to 40. This adjustment is intended to facilitate faster consensus among high-performing validators, resulting in a more efficient network and a better user experience, particularly for cross-chain transactions.

In terms of decentralization, this change will have minimal impact. Presently, validators ranked from 41 to 47 collectively hold only around 2% of the network's voting power. Furthermore, the Nakamoto Coefficient, which measures the number of validators needed to control over one-third of the network's voting power, will remain at 8. This level of decentralization aligns with other prominent networks in the Cosmos ecosystem, including the Cosmos Hub (7), Celestia (7), and Osmosis (10).

Looking forward, we plan to regularly assess the validator set and consider potential expansions if additional reliable and active validators emerge within the network. By fine-tuning the validator set size, we aim to strike a balance between efficiency and decentralization, ultimately benefiting Nolus network participants with improved transaction speeds and smoother operations.

By voting “YES” on this proposal, you support reducing the active validator set from 50 to 40, fostering a more streamlined and effective Nolus network.