Product Keynote: Layer33 - Marinade Finance

Independent validators on Solana are fighting for survival, and a new coalition called Layer 33 is stepping up to defend the network's decentralization. At Breakpoint 2025, founder Nikki Scannella unveiled the first-ever coalition of independent validators, announced their liquid staking token INDIE SOL is now live on Jupiter, and shared alarming statistics about the decline of indie validators on the network.

Summary

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Layer 33 represents a watershed moment for Solana's validator ecosystem. The coalition brings together 25 independent validators—operators who are free from venture capital funding and institutional backing—to collectively advocate for and protect the network's decentralized nature. These "indie" validators, as Scannella prefers to call them, were the original backbone of Solana at its inception.

The presentation painted a stark picture of the current validator landscape. The network has lost over 1,000 nodes in just 12 months, dropping from approximately 2,000 validators to below 800. While some of this attrition cleared out bad actors and underperformers, Scannella warned that high-performing, community-contributing validators are now starting to fail financially—and many aren't speaking up about their struggles.

Perhaps most alarming is the economic reality facing new validators: it now takes approximately 160,000 SOL to break even when running a zero-fee validator. This is a dramatic increase from the 10,000-20,000 SOL that was sufficient in earlier days, effectively shutting out smaller operators and hobbyist validators from participating in network security.

The coalition's core mission is encoded in its name: securing 33% of Solana's stake on independent validators. This threshold is critical because 33% stake concentration could theoretically halt the network, while 66% would represent an even more severe centralization risk. Currently, the top 80 validators already control 66% of the network's stake.

Key Points:

The Definition of Independent Validators

Layer 33 has established a clear definition for what constitutes an "independent" validator: one that is free from outside funding, free from venture capital investment, and fundamentally the opposite of institutional. These operators run their businesses without the backing of large financial entities, making them more aligned with the original cypherpunk ethos of blockchain technology.

However, Scannella acknowledged that the traditional model of running a node as the sole means of value creation is becoming unsustainable. With declining fees and increasing stake requirements, indie validators must evolve and find new ways to contribute value to the ecosystem. Layer 33 aims to be that evolution—providing infrastructure services, education, and a unified voice for independent operators.

The Validator Decline Crisis

The statistics presented at Breakpoint paint a concerning picture. Over the past 12 months, Solana has lost more than 1,000 validator nodes. While initial attrition removed underperformers and bad actors from the network, the current wave of closures is affecting legitimate, value-contributing validators who have been building on Solana for years.

The economic barrier to entry has grown substantially. Breaking even now requires approximately 160,000 SOL for a zero-commission validator—a figure that excludes all but the most well-capitalized operators. This economic pressure threatens to transform Solana's validator set from a diverse coalition of independent operators into a concentrated group of institutional validators.

Layer 33's Mission and Services

Layer 33's primary goal is straightforward: secure 33% of Solana's stake on independent validators. The coalition isn't trying to monopolize this responsibility—Scannella explicitly encouraged other groups to form similar coalitions to collectively achieve this decentralization target. Currently, Layer 33 validators represent approximately 4% of that 33% goal after just one month of operation.

The coalition plans to offer multiple services to sustain independent validators, including RPC and GRPC services, transaction landing through partnerships with Blue Shift and Grid Academy, and educational programs. More services are planned for announcement over the coming months, positioning Layer 33 as core infrastructure built by indie validators, for indie validators.

INDIE SOL Liquid Staking Token

In a surprise announcement, Scannella revealed that Layer 33's liquid staking token, INDIE SOL, is now live and available for trading on Jupiter. The token promises high performance and competitive APY yields while directing any fees generated back to supporting the Layer 33 coalition and its member validators.

This launch provides a direct mechanism for Solana users to support network decentralization through their staking choices. By staking SOL in the INDIE SOL pool, users can simultaneously earn yields while ensuring their stake supports the independent validators fighting to maintain Solana's decentralized architecture.

Why Institutions Can't Replace Indies

Scannella addressed a common counterargument head-on: the notion that institutional validators can maintain decentralization if stake naturally flows to larger operators. He firmly rejected this premise, arguing that institutional validators have fiduciary responsibilities to their stakeholders, not to network decentralization. The task of maintaining decentralization belongs to independent validators who have proven they can accomplish it—and the Solana Foundation should be free to focus on broader ecosystem growth rather than solving a problem that indie validators have already addressed.

Facts + Figures

• Layer 33 is the first coalition of independent validators on Solana, comprising 25 member validators
• The network has lost over 1,000 validator nodes in the past 12 months, dropping from approximately 2,000 to below 800
• Breaking even as a zero-commission validator now requires approximately 160,000 SOL, up from 10,000-20,000 SOL historically
• The top 80 validators currently control 66% of Solana's network stake
• 33% stake centralization represents the threshold that could theoretically halt the network
• Layer 33 validators currently represent approximately 4% of the target 33% stake threshold
• Layer 33 has been operational for approximately one month
• INDIE SOL LST is now live and tradeable on Jupiter
• The coalition plans to announce additional services over the next 2-3 months
• Services launching include RPC, GRPC, and transaction landing through Blue Shift and Grid Academy partnerships

Top quotes

• "We are a collective of 25 independent validators, value contributing, committed to keeping Solana decentralized, performant, and secure."

• "These were the original validators that were at the core of Solana at our inception. And we believe it's time for their voice to be heard."

• "It now takes 160k SOL if you're running a zero-zero validator to break even. That is not cypherpunk. That is not mom and pop."

• "Their job is to their stakeholders. It's on indie validators to maintain the decentralization, not on them. That's not a fair ask of them."

• "Our goal, simple: Layer 33, secure 33% of Solana's stake on independent validators."

• "Our performance contributing validators are starting to die, and they're not speaking up about it. They come and talk to me, but they don't tell all of you."

• "We're hoping that the teams out there copycat us and that more coalitions of validators get started and they can help us secure that 33% together."

• "A lot of the open source tooling, core infrastructure, public goods, many of the protocols that are here now and that you know and love, started as running independent operations."

Questions Answered

What is Layer 33 and why was it created?

Layer 33 is the first coalition of independent validators on Solana, founded to address the growing centralization concerns in the network's validator ecosystem. The coalition was created because independent validators—those without venture capital or institutional backing—are increasingly struggling to remain economically viable. As fees have declined and stake requirements have increased, many of these original Solana validators are being forced to shut down. Layer 33 aims to give these operators a collective voice, provide supportive infrastructure services, and ultimately secure 33% of Solana's stake on independent validators to maintain network decentralization.

What qualifies a validator as "independent" according to Layer 33?

According to Layer 33's definition, an independent validator is one that operates free from outside funding and venture capital investment, essentially the opposite of an institutional validator. These are operators who have built their validation businesses without the backing of large financial entities or investment firms. While the original model of running a node as the sole revenue source is becoming unsustainable, independent validators are characterized by their alignment with the cypherpunk ethos of decentralization and their historical role as the core backbone of Solana since its inception.

Why does the 33% stake threshold matter for Solana?

The 33% threshold is critical because it represents the point at which coordinated action by validators controlling that stake could theoretically halt the Solana network. With 66% stake concentration, even more severe manipulation becomes possible. Currently, the top 80 validators already control 66% of network stake, making the preservation of independent validators even more crucial. Layer 33's mission is named after this threshold specifically because maintaining at least 33% of stake on independent, decentralized validators is essential for network security and censorship resistance.

What is INDIE SOL and how can users participate?

INDIE SOL is Layer 33's newly launched liquid staking token, now available for trading on Jupiter. Users can swap SOL for INDIE SOL to stake their tokens with Layer 33's coalition of independent validators. The token offers high performance and competitive APY yields while any fees generated go directly toward supporting the Layer 33 coalition and its mission to preserve decentralization. This provides Solana users with a simple way to support independent validators through their staking choices while maintaining liquidity.

How severe is the current validator decline on Solana?

The validator decline on Solana has been dramatic. Over the past 12 months, the network has lost more than 1,000 validator nodes, dropping from approximately 2,000 active validators to below 800. While initial attrition removed underperformers and potential bad actors, the current trend is now affecting legitimate, value-contributing validators who have been building tools and contributing to the ecosystem for years. The economic pressure is significant: breaking even as a zero-commission validator now requires approximately 160,000 SOL, compared to just 10,000-20,000 SOL in earlier periods.

What services will Layer 33 provide to support independent validators?

Layer 33 plans to be a core infrastructure provider for independent validators, by independent validators. Initial services include RPC and GRPC access, transaction landing services through partnerships with Blue Shift, and educational programs through Grid Academy. Additional services are planned for announcement over the next two to three months. The coalition also supports validators by telling their stories and advocating for their interests within the broader Solana ecosystem, providing a platform that many struggling operators have lacked.