Governance Proposal: Reduce the Active Validator Set to 100 (or less on discussion)
Summary
This proposal seeks to reduce the Terra Classic active validator set to 100 validators in order to improve network performance, security, decentralisation quality, and long-term sustainability.
Over time, the expansion of the active set has unintentionally lowered the economic and operational standards required to participate as an active validator. This has resulted in inconsistent performance, increased downtime, weaker governance participation, and a dilution of accountability.
Reducing the active set to 100 validators restores a higher entry threshold, ensures that only committed and technically capable validators participate in consensus, and strengthens Terra Classic as a serious production blockchain.
Motivation
Validator participation is the backbone of Terra Classic. Validators are responsible for:
- Securing the network
- Producing blocks reliably
- Participating in governance
- Running infrastructure professionally
- Acting in the long-term interest of the chain
As the active set has expanded, several structural issues have become increasingly apparent.
1. Declining Validator Performance Quality
A growing number of validators enter the active set at extremely low stake thresholds, often without:
- Redundant infrastructure
- Monitoring and alerting systems
- Upgrade readiness
- Governance engagement
- Long-term commitment
While experimentation and learning are important, consensus participation is not the place for hobby-grade infrastructure. Poorly performing validators introduce measurable risk for both delegators and the network as a whole.
2. Reduced Economic Security
A larger active set spreads stake more thinly across validators, reducing the economic cost of misbehaviour and weakening network security incentives.
By reducing the active set:
- The minimum LUNC required to enter the active set increases
- Validators must demonstrate community trust through delegation
- The cost of malicious or negligent behaviour becomes materially higher
This aligns validator incentives with the long-term health and security of the chain.
3. Governance Signal Dilution
Governance is not simply about voting “yes” or “no.” It requires:
- Understanding proposals
- Reviewing code and implementation details
- Acting independently rather than following sentiment
- Participating consistently
An oversized active set has led to:
- Inactive or absent governance participation
- Rubber-stamp voting
- Validators active in name only
A smaller, higher-quality active set improves the signal-to-noise ratio in governance decisions and leads to better-informed outcomes.
4. Professionalism and Reputation of Terra Classic
Terra Classic competes for relevance in a multi-chain ecosystem. External developers, integrators, and infrastructure providers assess chains based on:
- Validator professionalism
- Network stability
- Upgrade reliability
- Governance maturity
A reduced active set signals that Terra Classic prioritises quality over quantity, reinforcing confidence among serious builders, stakeholders, and long-term participants.
5. Encouraging Serious Validators, Not Excluding Participation
This proposal does not exclude smaller validators from the ecosystem.
Inactive validators can still:
- Operate as standby validators
- Build tooling, dApps, or infrastructure
- Earn delegation organically
- Improve performance and reliability
- Re-enter the active set through merit and community trust
The goal is not exclusion — it is raising standards for consensus participation.
Proposal Details
- Change: Reduce the active validator set size to 100
- Mechanism: Adjust the MaxValidators parameter via governance
- Scope: Applies to consensus participation only
- No slashing or removal penalties beyond existing protocol rules
Expected Outcomes
Short Term
- Increased minimum stake required to enter the active set
- Removal of consistently underperforming validators from consensus
- Improved block production consistency
Medium Term
- Stronger validator accountability
- Higher governance participation quality
- Increased delegator confidence
Long Term
- Improved network reputation
- Stronger economic security
- A sustainable validator ecosystem focused on reliability and contribution
Risks and Mitigations
Risk: Reduced Validator Count Lowers Decentralisation
Mitigation:
Decentralisation is not measured by raw count alone, but by:
- Geographic distribution
- Independent operators
- Infrastructure diversity
- Economic stake distribution
A smaller set of independent, competent validators provides stronger decentralisation than a larger set of inactive or poorly maintained nodes.
Risk: Smaller Validators Feel Discouraged
Mitigation:
Clear communication that:
- This is a quality threshold, not a gatekeeping mechanism
- Standby validators remain vital to the ecosystem
- Entry remains open through delegation, performance, and trust
Conclusion
Reducing the active validator set to 100 is a necessary step to reinforce Terra Classic as a secure, reliable, and professionally operated blockchain.
This proposal restores meaningful economic thresholds, strengthens governance, improves network performance, and ensures that consensus participation is reserved for validators who demonstrate commitment, capability, and accountability.
Quality consensus participation benefits delegators, developers, validators, and the chain as a whole.
Voting Options
- YES – Reduce the active validator set to 100 to improve performance, security, and governance quality
- NO – Maintain the current active validator set size
- NO WITH VETO – Oppose this change as harmful to the network
- ABSTAIN – No strong position