A user on X, arixon.eth, alleges that over 90% of Solana validators are subsidized heavily by the Solana Foundation and Alameda Research, the defunct trading wing associated with the bankrupt cryptocurrency exchange FTX.

In a post on October 4, the analyst said the level of subsidy is “shocking” but will come to “harm SOL prices in the long term. “

Are Solana Validators Heavily Subsidized?

Solana is a high-throughput blockchain that aims to compete with Ethereum. It combines proof-of-stake (PoS) with proof-of-history (PoH) as a consensus method.

Validators play a crucial role in this architecture since they verify the validity of transactions and add them to the blockchain while ensuring the network remains secure and decentralized. A node must stake SOL to become a validator, …