Summary
This proposal seeks to reduce the size of the dYdX Chain’s active validator set from 31 to 21.
Abstract
Following the reduction in the dYdX Chain validator set to 31 in March 2026, several validators have wound down operations, and the active set currently has only 29 filled slots as on 11 September 2026.
Network activity has also declined materially over the same period: average daily trading volume has fallen from approximately $121.2M in June 2026 to approximately $40.2M over the trailing 30 days (a decrease of roughly 67%). The decline has continued into September, with the trailing 7-day average down to approximately $31.5M/day (roughly 74% below June)*.
At the same time, stake weight remains heavily concentrated at the top of the set; the 10 validators ranked #22–#31 collectively hold only 5.4% of total active-set stake, and several of them are only marginally active (one moniker is currently labeled “Shutting Down”, the bottom two combined hold roughly ~21,000 DYDX, 0.01% of total stake)*.
This proposal seeks to change the `max_validators` parameter from 31 to 21, aligning the on-chain limit with the current scale of network activity and the actual distribution of stake.
Motivation
-
Coordination and governance efficiency. A smaller, more engaged validator group improves responsiveness during upgrades or incidents, reduces coordination overhead in critical situations, and keeps the governance process efficient. dYdX operates with a Designated Proposer Set of 8 validators responsible for block production, so the active set size primarily affects coordination and governance participation rather than core chain performance, making periodic right-sizing a normal part of chain maintenance rather than a response to any single event.
-
Validator economics have shifted with network activity. Average daily trading volume is down roughly 67% from June 2026 levels over the trailing 30 days, and the decline has continued into September (trailing 7-day average down ~74% from June)*. Since a meaningful share of validator and staker rewards is tied to network fees, this materially reduces the revenue available at the margin, while infrastructure and operational costs for running a validator are largely fixed. A set sized for a higher-activity period no longer reflects current conditions. Moreover, a consolidated active set will strengthen the dYdX Grants Program’s capacity to support validators over the long term.
-
Stake is concentrated well within a 21-validator set. Validators ranked #22–#31, at the time of writing, hold just 5.4% of total active-set stake combined (~18.4M of ~305.6M DYDX), and several are already marginal in practice, one moniker is currently labeled “Shutting Down,” and the bottom two validators by rank hold a combined ~21,000 DYDX, together under 0.01% of total stake. Reducing to 21 removes slots with minimal stake and influence while preserving coverage of essentially all meaningfully staked participants (the top 21 hold ~94% of total stake)*.
-
Raises the economic barrier to entry. With `max_validators` at 31 and only 30 seats filled, the active set currently has an open slot that any validator can claim regardless of stake; the lowest-ranked filled validator today holds just 27 DYDX. Reducing the cap to 21 removes this open slot and the marginal seats around it, so a new entrant would need to exceed the stake of the current 21st-ranked validator (~4.44M DYDX, ~1.45% of total active-set stake) to join. This meaningfully raises the cost of acquiring a seat in the active set, enhancing network validation and governance security.*
-
A reasonable level of decentralisation is preserved. Reducing the maximum validator set to 21 would preserve a very reasonable level of decentralisation at both the block production and the governance decision-making layers of the dYdX Chain. In addition, this change would not have an impact on the dYdX Chain’s Nakamoto coefficient, which would remain intact.
Specification
We propose to change the maximum size of the dYdX Chain active validator set as follows:
| Parameter | Current Value | Proposed Value |
|---|---|---|
| max_validators | 31 | 21 |
Acknowledgement
We recognize that validators currently ranked #22 and below have contributed meaningfully to the network. This reduction reflects the natural evolution of the validator ecosystem and is in line with ongoing efforts to maintain a well-coordinated and efficient validator set. We are grateful for their service, and validators exiting the active set remain welcome participants in the broader dYdX community.
Next Steps
We invite the community to engage in this discussion and provide feedback on this post. If there is no significant objection, we plan to submit the on-chain proposal on Monday, September 14, 2026.
*figures as of September 11, 2026.