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Do the validators need information from the blockchain to produce blocks, or is it enough just to store a few recent blocks? What is the incentive to use large amounts of storage to store the complete ledger (or when sharded, store the full shard)?

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It's not just in Casper, it's in every consensus protocol out there (to my knowlodge). Full non-miner nodes does not benefit economically from the veriffication process, but if you want to validate your transactions by yourself (you're a big user and you want to be more secure about your transactions), you can run a full node.

this link provides more explanation

Have a nice day :D

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EIP 908: Reward clients for a sustainable network

https://eips.ethereum.org/EIPS/eip-908

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