Validator incentives on Dusk are tightly linked to the cost of enforcing privacy. For Dusk Network, this balance becomes critical as institutional transaction flows stabilize rather than expand rapidly.Privacy preserving execution is expensive by design. Zero knowledge proofs, selective disclosure, and compliance aligned verification require sustained computation and reliable infrastructure. These costs do not scale down easily, even when transaction volumes remain steady. Validators must maintain performance regardless of short term activity changes.Predictable rewards therefore matter more than raw volume growth. If DUSK fees remain flat while privacy computation costs rise with protocol usage or complexity, smaller operators feel pressure first. Hardware depreciation, energy use, and operational overhead continue on fixed timelines, while rewards may not adjust with the same precision.This creates a quiet exit risk. The network can appear healthy with stable institutional throughput, yet validator diversity may decline as participation becomes viable only for larger or more efficient operators. Security assumptions may hold, but resilience and decentralization weaken over time.For DUSK, sustainability depends on alignment. Privacy strengthens trust and institutional appeal, but incentives must reflect the real cost of providing it. If rewards remain predictable and proportional, validators stay engaged. If not, stable usage alone may not be enough to preserve a broad and resilient validator set.

