This would effectively mean the death of small nodes. I’m already seeing some hints that this may never become a problem and that 100 nodes could be enough. If that’s the direction they’re taking, though, it would be a step backward from the project’s stated policy of growing the validator set.
I honestly don’t understand why they’ve decided to go down this path. They keep arguing that it’s about decentralization, while 50% of the network is already concentrated among the top-level nodes.
Now that money is flowing into the ecosystem, everyone is naturally defending their own interests. Small nodes have no one really advocating for them, while the top 100 nodes would obviously benefit from getting rid of that competition.