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Got some inbound on this assertion that you need "thousands of nodes" for future securities compliance.
This is an important one so let’s not spread inaccurate details without looking at the actual draft language, eh?
I’m no lawyer and my informal views are my own, but here you go:
The actual regulatory direction we are seeing (in real time with the draft) is that there isn't any fixed "magic number" of validators or nodes needed to achieve proposed decentralization standards.
It’s more about who controls the network - so what lawyers call “fact specific analysis.”
And what we’re seeing is proposals that care more about stake concentration than node count. So that raises questions like:
(a) If most of the economic power is held by just a few players, does adding thousands of nodes actually make the network more decentralized?
(b) If one entity controls the majority, even if they're spread across 10k different nodes - would that pass the test? Are those the blockchains that deserve special reg treatment? Tough one to argue.
So everybody’s favorite centralized punching bag, Hyperliquid (with their 21 validators) could demonstrate how a smaller cluster may still be properly decentralized - as long one or a few players don't actually control it and there is defensible stake distribution (and leaving that exact case to somebody with more knowledge than me to argue/defend).
But the evidence is pretty clear on the advantages of these smaller clusters in both performance and ability to iterate – such that the burden will shift to the global consensus chains with thousands of nodes to defend the cost/benefit of all that overhead. And if the stake is concentrated such that we’re ultimately still just trusting a few big guys – that excess validator bloat might be a tougher sell in the face of these new rules.
I guess in the end, the real question isnt’t "how many nodes do we have?" but rather "who actually controls the stake?" and "does this setup achieve real decentralization, or just the appearance of it?"
And we might now see regs and rules that look through decentralization “theater” – where there is an appearance of wide distribution, but control rests with a few.
And yes, Fogo has been monitoring this situation for months and you can be sure we launch with the appropriate model Day 1. More details to come on this.
And finally: not financial advice, not legal advice, and time will tell on what actual “clarity” we get.
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