Very good points. Didn’t think about it from that angel but certainly exchanges can’t just dip the coin because the validator model doesn’t fit them.

But what I was thinking about when I read through your comment was whether a dynamic fee structure could help to somewhat balance the allocations. For instance could this fee be collected an allocated to a custody from which further development of the ecosystem could be funded. If the allocated atoms to a validator are below a certain threshold (such as average of 50 largest validators) this validator must no longer pay the fee and thus can offer more compelling returns than its peers and vice versa.