Solana Foundation Tightens Delegation Program to Boost Network Decentralization

As Solana continues to scale and evolve, decentralization remains its top priority. In line with that mission, the Solana Foundation has announced a significant update to its Delegation Program, aimed at reducing dependency on the Foundation stake. This update also seeks to encourage greater community involvement.

New Policy to Boost Decentralization

The original purpose of the Solana Foundation was to help bootstrap the network by allocating SOL tokens to validators. This would be possible by allowing them to participate in consensus and earn rewards without needing to hold large amounts of SOL themselves.

While the program has contributed to Solana’s rapid growth and resilience, the foundation leaders have acknowledged challenges with the current structure. For example, it has allowed some underperforming validators to continue receiving support, even as the network has matured and competition has increased.

To tackle this issue, the foundation introduced a new policy to reinforce decentralization. According to the network, for every new validator added to its Delegation Program, three will be removed if they have held a Foundation stake for over 18 months. Additionally, validators that will be removed are those with less than 1,000 SOL in external stake (i.e., staked outside the foundation).

This strategic initiative seeks to make room for new, high-potential validators who are building organic support from the community. It will also help diversify and spread influence across participants, thereby making the Solana network more resilient and aligned with its decentralized ethos.

“The change aims to reduce reliance on Foundation delegation, encourage community-supported validators, and maintain a more efficient and decentralized network,” the foundation stated.

Institutional Interest in Solana

The strategic update to Solana’s delegation program comes as several institutions continue to demonstrate interest in the coin. Earlier today, DeFi Development Corporation (formerly Janover) revealed that it added 88,164 SOL, valued at approximately $11.5 million, to its holdings. This brings its total holdings to 251,842 SOL, worth roughly $34.4 million.

Notably, the commercial real estate company also shared that it would immediately stake its SOL holdings to boost its yield. Similarly, SOL Strategies, a Canadian company, recently secured a $500 million convertible note to expand SOL holdings.

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