Proposal: Reduce Maximum Validator Set to 25

Summary

This proposal updates the Juno staking parameter max_validators to 25 in order to better align the validator set with current network conditions and economics.

Context

Over time, network activity and fee generation have declined while the validator set size has remained relatively large. As a result, rewards are spread thinly across many operators, which can make long-term validator participation less sustainable. Recent community discussion has also noted that parts of the validator set are already operating at very low profitability and are leaving the active set one by one.

Relevant discussion: https://x.com/theNETAstandard/status/2016545211493597524

Specification

If this proposal passes, the chain will execute a MsgUpdateParams transaction setting max_validators to 25. No other staking parameters will be changed.

Impact and Rationale

Under this change, only the top 25 validators by voting power will remain active. Validators below that threshold will become inactive, and delegators to those validators will need to redelegate if they wish to continue earning staking rewards. The proposal does not modify inflation, staking mechanics, commission rules, or any other economic parameters.

The intent is to concentrate rewards across a smaller active set so that remaining validators can operate sustainably while continuing to provide reliable network infrastructure. This is a limited, reversible parameter adjustment within the existing Proof-of-Stake model and can be revisited by governance if network conditions change in the future.