# Strengthen Tokenomics: Cut Validators from 110 to 55 **URL:** \ **Category:** Protocol\ **Tags:** governance, funding, technical\ **Created:** [October 3, 2025, 6:52pm UTC](https://forum.celo.org/t/strengthen-tokenomics-cut-validators-from-110-to-55/12435 "2025-10-03T18:52:55Z")\ **Posts on this page:** 1\ **Showing post:** 31
**Author:** ![alex\_Verda](https://avatars.discourse-cdn.com/v4/letter/a/e19adc/32.png) [@alex\_Verda](https://forum.celo.org/u/alex_Verda)\ **Post date:** [October 21, 2025, 11:09pm UTC](https://forum.celo.org/t/strengthen-tokenomics-cut-validators-from-110-to-55/12435/31 "2025-10-21T23:09:16Z")
> [@yomfana](#): > > Mechanically, minting ~9,041 cUSD per epoch is collateralized by an equivalent USD value of CELO being transferred into the Mento Reserve; validators receive the cUSD. **That part is clear**. What’s not clear is whether the reserve later dumps that CELO for either rebalancing or any other purpose. You’re correct there is no guarantee of if/when Mento will sell. My main point here being that, according to the passed governance proposal, CELO is not in their target collateral, meaning if/when collateral becomes tight due to additional issuance or adverse foreign exchange movements, CELO seems first on the chopping board unless I’m mis-reading this approved governance proposal. > Also, the epoch rewards doc you quoted earlier **was superseded** by the [“Great Celo Halvening” proposal;](https://forum.celo.org/t/the-great-celo-halvening-proposed-tokenomics-in-the-era-of-celo-l2/9701) have you factored it into your arguments? Yes, I’ve considered the Great Celo Halvening before my comments above. Nevertheless, I still believe post L2 transition, we simply don’t need 100+ validators. I can imagine something like 50-60 with max validators per group going slightly down to 4 to still promote having at least 20-30 independent groups, which seems sufficient to me. It doesn’t have to be 55, but I believe a reduction in the number of validators to 50-60 would not materially undermine the network security. --- _[View the full topic](https://forum.celo.org/t/strengthen-tokenomics-cut-validators-from-110-to-55/12435)._