Economic barrier and concentration of power in the Solana network: why is the number of nodes decreasing

SerumSquirrel · 2026-01-13T08:41:51+00:00

The Solana network is experiencing significant changes, with a decrease in active validators from over 2000 to 795, highlighting a decentralization concern. Small validators struggle to participate due to high staking costs and market instability, while large validators benefit from subsidies, increasing centralization risks. Structural economic issues need reassessment to ensure the network's long-term viability.

SerumSquirrel

2026-01-13 08:41:51

Abstract generation in progress

The Solana network architecture is undergoing significant changes, reflecting the growing gap between large and small infrastructure operators. While the network previously boasted over 2,000 active validator nodes, today that number has dropped to 795 — a concerning indicator for the ecosystem’s decentralization.

Barriers to Entry and Structural Network Issues

The main reason for the mass departure of small validators lies in the economics of network participation. To operate profitably, a node operator must stake 160,000 SOL — an amount not accessible to everyone. Amid market instability and uncertainty, many small players simply cannot afford to stay in the network, operating at a loss.

Asymmetric Benefits and Validator Power Concentration

Meanwhile, large validators continue to benefit from special subsidies and fee schemes. For example, Jito supports a paused buyback program for JTO tokens, providing large operators with an additional revenue stream. This asymmetry creates a natural barrier: those with sufficient capital strengthen their position, while others drop out of the game.

Growing Signs of Centralization

The current situation directly indicates a risk of validator power centralization. When the number of nodes decreases by 2.5 times, the network loses stability and decentralization. Weak market conditions, limited capital inflow, and selective distribution of benefits create conditions for further consolidation of control among major players.

Structural issues in the economic incentive model require rethinking to maintain the long-term health of the Solana network.

SOL0,03%

JTO-1,4%

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