---
title: "NetOps WG · Decide the validator subsidy future & pseudo-jailing"
path: "/ideas/dao-validator-subsidy-future"
version: "1.0.0"
author: "Hydrate"
createdAt: "2026-07-11T14:31:10.887Z"
updatedAt: "2026-07-11T15:09:46.505Z"
---

# NetOps WG · Decide the validator subsidy future & pseudo-jailing

<Infobox>
| 🟠 Proposed |
| Network Operations WG |
| ⚙️ Protocol |
| Phase 1 — active at launch |
| Faraz |
| [RFC — Validator Subsidy & Pseudo-Jailing](https://radixtalk.com/t/rfc-the-future-of-the-validator-subsidy-pseudo-jailing/2167) |
</Infobox>

The validator subsidy underwrites network liveness and is one of the DAO's most consequential early decisions. The RFC weighs ending it immediately, a phased reduction, or continuing it, alongside an optional pseudo-jailing mechanism to enforce uptime.

## Deliverables

- Vote the subsidy timeline (immediate / phased to ~2-month transition / continue).
- Decide whether to implement pseudo-jailing (committee votes, stake-weight thresholds, 70%+ opt-in).
- Address validator-set concentration (top-50 hold ~85% of stake; target ~1% median).
- Survey validators on how many would exit if the subsidy ends.
## Dependencies & cross-references

- Governed by [Daffy's Radix DAO framework](https://github.com/Shadaffy/radix-dao) (repo `Shadaffy/radix-dao`); see the [Governance Framework Reference Repo](https://radixtalk.com/t/rfc-dao-governance-framework-reference-repo/2268) and [Charter (Round 1)](https://radixtalk.com/t/rfc-dao-documents-round1-the-charter/2269).
- Funded from [operating budgets](/ideas/dao-operating-budgets).
- Administered by [a subsidy-administration entity](/ideas/dao-subsidy-admin-entity).
## Sources

- [RFC: The Future of the Validator Subsidy & Pseudo Jailing](https://radixtalk.com/t/rfc-the-future-of-the-validator-subsidy-pseudo-jailing/2167)