Today marks the one year anniversary of ValiDAO, the people's validator. As we reflect on our first year, the story of ValiDAO is one of continuous adaptation and steps towards deeper decentralization and community involvement.

In this article, we’ll delve into ValiDAO’s history, exploring the milestones we’ve reached. Join us as we reflect on our journey, celebrate our successes, and outline our vision for the future of a user-owned blockchain ecosystem.

Introduction
Validators are essential for decentralizing blockchain networks, yet the economic rewards are often centralized among a few individuals who own these validator companies. Recognizing this paradox, we launched ValiDAO one year ago with a simple goal: to democratize this outdated and economically-centralized business model.

Fair-launched without venture capital, investors, or a seed round, ValiDAO has since bootstrapped its way to over 35,000 delegators and $30 million in assets under delegation (AUD). In the process, we have established ourselves as the premiere validator. Through our token $VDO, individuals can, for the first time, delegate their assets and own a part of the validator to which they delegate, offering a holistically decentralized solution.

In recent months we have achieved many milestones. Some of these include becoming the top IBC relayer on Cosmos; receiving a Tier 1 foundation delegation from Celestia due to our contributions; being one of the top technical contributors on Hyperliquid; partnering with Thunderheadlabs for their stHYPE LST; and working with teams such as Initia and Story protocol through their testnet phases and onto becoming genesis validators.

After establishing a novel tokenized validator model, we quickly laid the legal and organisational groundwork to support long-term sustainability. This included forging a new governance framework, introducing the Validator Foundation, and leveraging our growing revenues to self-bond on the chains we operate. In parallel, our community has grown into a thriving ecosystem of contributors and stakeholders who guide and shape our evolution.

The following sections provide an overview of some of our highlights throughout the last 12 months, from addressing a multi-billion dollar validator market gap to embedding ourselves into the very foundations of emerging networks — all while empowering the community to play a decisive role in our future.

How ValiDAO is Democratizing a Multi-Billion Dollar Industry

To appreciate ValiDAO’s impact, it is important to understand the scale of our market. The Proof-of-Stake (PoS) ecosystem has a market capitalization of approximately $717.14 billion. The top 20 PoS networks contribute to a staked market capitalization of around $282.2 billion. Additionally, the combined AUD of the top nine validators amount to $42.94 billion USD. Despite this significant growth, there was previously no straightforward way for the public to gain exposure to the expanding market of validators. ValiDAO addresses this gap with our tokenized validator model, enabling individuals to participate, delegate and own a tangible portion of this growing sector.

ValiDAO: Owning the Base Layer of Cryptocurrency Infrastructure
While many projects experience temporary popularity driven by hype cycles and sector-specific narratives, ValiDAO stands out by maintaining an evergreen approach rooted in adaptability and strategic flexibility. This resilience is based on ValiDAO's capacity to swiftly deploy infrastructure across new and promising blockchain networks and protocols, ensuring it remains relevant regardless of market dynamics.

ValiDAO leverages this dynamic environment by expanding its infrastructure to support emerging technologies, positioning itself to provide services for the latest industry developments. We have successfully integrated with several leading protocols, including Celestia, Hyperliquid, Initia, Dymension, Karak, and Eigenlayer. Our future plans include expanding to Monad, Movement, Berachain, and any other proof-of-stake networks that we and our growing community of over 7,000 people deem a good fit.

The theory behind ValiDAO is simple: new blockchain networks require security and other infrastructure services, which are increasingly offered by specialized staking companies. While individuals can also operate these services, newer chains tend to have smaller validator sets. This leads to dedicated staking companies dominating due to their greater resources, allowing them to offer superior uptime and business development efforts. As a result, users on today's newer chains generally cannot easily participate in the base consensus layer economy of most new PoS chains. Ownership of $VDO gives users an easy way to gain exposure and participate in consensus operations without having to manage the technical infrastructure.

Additionally, broad ownership of $VDO increases ValiDAO's likelihood of attracting stakes on the chains where it operates, due to both mindshare and tokenholder incentives. When there is an overlap of $VDO ownership and Layer 1 token ownership, users are more likely to stake with a validator entity in which they have ownership.

By onboarding ValiDAO, blockchain networks benefit from our growing and active community which helps expedite activity on their protocols. As part of our commitment to our partner protocols, we strive to add value rather than merely leveraging our brand, as many entrenched validators do today. This means that beyond providing institutional-grade security, we also build proprietary tools for them and create educational content about their protocols to align our communities. We are committed to a hands-on approach and want to ease any pain points that our partner protocols may have.

Seeing as our validators, RPCs, IBC relayers, DA nodes and more are run from bare metal servers primarily in Reykjavik, we improve the nakamoto coefficient of chains we operate on. So with all this being said, when you stake with ValiDAO, you're getting free-range, locally-sourced, organic, farm-to-table consensus services. 100% free of seed oils and with highly performant infrastructure, we're always a healthy addition to any chain.

Establishing Our Cayman Entity and Governance Framework
Over the past year, we have evolved from a simple operational entity into a structured, transparent, and accountable decentralised organisation. Key to this evolution is the formation of the Validator Foundation, a Cayman foundation company created to serve the DAO. The Foundation provides a legally recognized structure to enter into contracts, manage assets, maintain compliance, and ensure ValiDAO’s long-term viability. Crucially, while the DAO and $VDO token holders drive overall strategy, the Foundation aligns with global legal requirements, reducing risk and helping us navigate complex regulatory environments.

We also introduced the ValiDAO Constitution — which governs our decision-making processes and coordinates both on-chain and off-chain actions. This framework defines the roles of the Foundation, an Advisory Council, and the LabsCo operational team, led by our acting Chief Validating Officer (CVO), Murakamikaze.

• Advisory Council: A group of 5–7 members, initially appointed and later elected annually, who oversee the treasury, budgets, and strategic decisions, holding the LabsCo accountable.

• LabsCo: ValiDAO’s day-to-day operational arm. Led by the CVO, LabsCo manages infrastructure, marketing, and business development, subject to community-driven checks and balances.

• Community Participation: Through ValiDAO Improvement Proposals (VIPs) and Snapshot voting, token holders help set fee structures, propose network expansions, award grants, and shape our future direction.

This governance infrastructure is an essential step towards progressive decentralisation. Over time, more decision-making power will shift to token holders, ensuring that as ValiDAO grows, so does the community’s influence on critical decisions.

ValiDAO x Dymension - Our First Domino of Success
On February 6, ValiDAO activated our Dymension validator, marking a significant milestone in our journey. To jumpstart staking, we ran an incentive program by allocating 4% of the VDO token supply exclusively to stakers who delegated to our Dymension validator.

During Dymension's testnet phases, we did not have the opportunity to operate on the network, which meant we lacked the staking support that other validators received from the Dymension foundation. To address this, we proactively purchased DYM tokens and self-bonded them with our validator. This was a strategic move that combined with the dedication of our large community of stakers and the effectiveness of our incentive program, allowed us to climb the ranks quickly.

Within just a few days, we attracted 33,000 delegators and over 3 million DYM tokens staked with us. This achievement not only highlights our successful launch but also established ValiDAO's Dymension validator as our largest to date at that time

This success on Dymension exemplifies one of the central pillars of our long-term strategy: self-bonding. By reinvesting revenue from back into the chains we operate on, we reinforce our validators with our own stake rather than relying solely on external capital. This deepens our commitment to each network’s security and ties our success more closely to that of our community and the ecosystems we serve.

Our community’s involvement extends far beyond passive participation. With our engaged members, we actively encourage proposals, discussions, and debates. Additionally, our buyback programmes use a portion of our fees and revenue to purchase $VDO on the open market, strengthening token value alignment. This ensures that as ValiDAO’s influence grows across multiple networks our community directly benefits.

Looking ahead, as our revenues from chains increase, we will phase out the taxes on our token. In the not-so-distant future, no taxes will be needed at all, with our security rewards from the chains we operate on providing the necessary revenue. This progression reflects our commitment to sustainable growth, where each strategic step — whether launching on a new network, self-bonding, or nurturing community involvement — contributes to a more inclusive and resilient validator ecosystem.

ValiDAO - The Top Relayer in the Cosmos Ecosystem
Over the past year, we have firmly established ourselves as a reliable, top-performing IBC relayer in the Cosmos ecosystem, ensuring efficient data flow across multiple networks.

The Celestia<>Osmosis IBC path is Celestia’s most heavily trafficked path, due to Osmosis being the liquidity hub of the interchain. At any given time, roughly half of all IBC transfers between Osmosis and Celestia will be relayed by ValiDAO. How do we do it? Seed oil free infrastructure:

ValiDAO's Acceptance into the Celestia Foundation Delegation Program
In addition to our relayer accomplishments, ValiDAO has been very active as a validator for Celestia.

On April 9th, 2024, ValiDAO was accepted as a Tier 1 delegate into the Celestia Foundation Delegation Program which was a significant milestone for our DAO.

About the Celestia Foundation Delegation Program
This programme supports and incentivizes validators who contribute meaningfully to the Celestia network’s stability, security, and performance. Its aims are to:

• Fair Participation: Provide opportunities for users to join the validator set while ensuring validators are proficient and reliable.

• Network Stability: Maintain stability by facilitating a steady transition of validators and avoiding sudden, disruptive changes.

• Mission Alignment: Enable the Celestia Foundation to use its stake to foster a modular blockchain network delivering exceptional performance.Selection as a Tier 1 delegate signifies that ValiDAO has met or exceeded the program's stringent eligibility criteria, including maintaining high uptime, contributing to the ecosystem, and ensuring robust security practices.

  Here is a link to the first and only DA network map in existence that we built being put to use.

Using this DA Node data, we have been able to build proprietary charts illustrating the growth of these nodes over time:

We remain fully committed to supporting Celestia and eagerly anticipate their upcoming developments.

ValiDAO x Initia

Introduction
Initia aims to create a robust network for interwoven rollups, and being part of the initial set of 40 validators allows us to play a pivotal role in ensuring a faster and more efficient chain experience at launch.

Out of 13,000 initial candidates, and after a rigorous selection process that narrowed the field to 250 finalists, ValiDAO was chosen for the Genesis Set based on our commitment, technical expertise, and community support. This selection underscores our dedication to securing the Initia network for the long term and aligns with our mission to provide institutional-grade security while fostering community engagement.

It's important to note that Initia is a permissionless network with no permanent positions. Validators are subject to re-delegations every few months, ensuring that only those who show consistent performance and active participation will maintain their roles. We are committed to upholding these standards and contributing positively to the Initia ecosystem.

We look forward to working closely with the Initia team and other validators to help secure the network.

We are also looking forward to continuing to provide educational pieces for the broader Initia community. Read our collaborative pieces here on Enshrinement and Initia VIPs.

Hyperliquid ValiDAO Alignment
Like ValiDAO, Hyperliquid was fair-launched and prioritizes returning value to its community. Since joining Hyperliquid’s testnet as a validator, we have focused on enhancing community infrastructure and tools.We developed the first Prometheus exporter, complete with a public dashboard that provides a live feed of metrics from the testnet. To assist less experienced operators, we created an easy-to-use monitoring stack featuring a one-liner containerized deployment of Prometheus, Grafana, and the Hyperliquid Exporter, significantly simplifying the setup process. Our public Grafana dashboard, built with these metrics, has become widely used within the Hyperliquid community.

Additionally, we launched maps that display the geographical locations of Hyperliquid testnet validators, improving transparency of validator distribution. Earlier in September, we released a comprehensive network node map showing all nodes on the network — including both full nodes and validator nodes. Most recently, we implemented a centralized OpenTelemetry (OTEL) collector to aggregate node operator metrics for correlation analysis, enabling advanced analysis of network performance and issues.

These contributions have not only provided valuable tools and resources for the Hyperliquid community but have also fostered greater collaboration and transparency within the network. By simplifying complex processes and offering accessible monitoring solutions, we have helped both new and experienced operators enhance their participation in the testnet.

On September 4th, 2024, we acquired the VDO ticker on Hyperliquid for $2,208.51. Since then, the landscape for new token listings on Hyperliquid has evolved rapidly. Each new auction occurs every 31 hours, beginning at twice the final price of the previous auction. From there, the auction price gradually declines until someone steps in to purchase it. This buyer may be an external team seizing an opportunity, or Hypurrfun (HL’s pumpfun mechanism) automatically acquiring the listing once the token’s TVL is sufficient, after which trading remains paused until the token officially lists on Hyperliquid.

In our case, this model has worked to our advantage. After our initial purchase, subsequent auctions have started at nearly 100 times our acquisition price. By securing the VDO ticker early, we’ve gained substantial optionality for the future. We now have the potential to seed liquidity more strategically, and we can explore enhanced tokenomic features tied to this higher baseline value. Ultimately, holding this ticker position strengthens our ability to shape the token’s market presence on Hyperliquid, aligning long-term network health with our community’s interests.

ValiDAO x Thunderhead: Supercharging Liquid Staking on Hyperliquid
Another key event this year has been our partnership with Thunderheadlabs and their upcoming stHYPE LST on Hyperliquid.

Thunderhead Staked HYPE ($stHYPE) Introduction
Thunderhead has positioned itself at a critical juncture as the Hyperliquid network prepares to receive billions in new capital, setting the stage for a surge of new DeFi applications on the HyperEVM. To support and accelerate this ecosystem, Thunderhead is introducing a native staking hub designed to boost DeFi growth through secure, MEV-aware yield generation.

$stHYPE is the premier LST for the Hyperliquid network, strategically crafted to amplify the broader ecosystem, encompassing both Layer 1 and HyperEVM. Users can securely deposit HYPE tokens into smart contracts and immediately start earning protocol rewards. Additionally, stHYPE is fully composable, seamlessly integrating with the entire suite of Hyperliquid applications including the spot exchange and eventually coin margin. This innovation by Thunderhead enhances utility and access across the network, helping to drive DeFi adoption and engagement on Hyperliquid. Below is a table listing $stHYPE’s key features;

We are proud to collaborate with Thunderhead and support them as one of their operators, ensuring a decentralized operator set.

By staking stHYPE directly through ValiDAO’s interface, our users will be able to drive HYPE’s decentralization while enjoying the benefits of effortless staking, instant liquidity, and automatic yield accrual.

Above is a sneak peek of our upcoming frontend integration with Thunderhead's stHYPE!

ValiDAO x Drop
One of our latest wins has been becoming a validator for Drop.

Drop Money Introduction
Drop is a cross-chain liquid staking protocol built on the Neutron blockchain, aiming to enhance capital efficiency within the interchain economy by unlocking liquidity from staked assets. Developed by former contributors from Lido Finance and P2P, Drop addresses the issue of over $15 billion worth of assets currently locked due to native staking. By leveraging Neutron's advanced features—such as Interchain Transactions (ICTX), Interchain Queries (ICQ), and Interchain Accounts (IA)—Drop offers a secure and trust-minimized liquid staking solution that is both open and accessible. This enables holders to retain liquidity while their assets are staked, allowing them to participate in DeFi activities without foregoing staking rewards. Drop's integration with various DeFi primitives enhances its utility, providing a broad range of compelling use cases that strengthen the economic viability of the interchain ecosystem.

ValiDAO's Role in Drop: Enhancing Liquidity and Decentralization
ValiDAO has been selected as one of the validators in Drop's Wave 1 Validator Set for Celestia, joining a group of top-tier operators such as 01node, ChorusOne, and Cosmostation. This inclusion signifies ValiDAO's commitment to supporting Drop's mission to unlock liquidity and decentralize staking on the Celestia network. By providing reliable and secure operations, ValiDAO plays a crucial role in promoting decentralization and fostering liquid staking growth within the ecosystem. Our participation enhances the modular infrastructure of Celestia, contributing to a robust and scalable blockchain environment. Through governance, community engagement, and infrastructure support, ValiDAO helps fuel a modular ecosystem, underscoring its dedication to advancing innovative solutions within Celestia and the broader digital asset space.ConclusionValiDAO is at the forefront of democratizing the validator industry within the Proof-of-Stake ecosystem. By offering the premier tokenized validator model, we empower individuals to participate directly in consensus operations and gain exposure to a sector that was previously inaccessible to the general public. Over the past 11 months, we have achieved significant milestones, including becoming a top IBC relayer on Cosmos, receiving a Tier 1 foundation delegation from Celestia, contributing to Hyperliquid as a top technical collaborator, and joining the Genesis Validator Set for Initia.

Our commitment to adaptability and strategic flexibility allows us to remain relevant in a rapidly evolving market. By expanding our infrastructure to support emerging technologies and partnering with leading protocols, we continue to provide institutional-grade security while fostering community engagement. We build proprietary tools, create educational content, and actively contribute to the networks we support, ensuring that we add tangible value beyond mere validation services.

As we enter our second year, we invite you to join us on this journey to reshape the validator landscape and drive forward the decentralization of blockchain networks. Stay updated on our latest developments, participate in discussions, and become part of our growing community of over 7,000 members.

Join our Telegram group: Telegram

Follow us on Twitter: @validaoxyz

Together, we can become the top PoS validator and build a more inclusive, decentralized future.