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I've seen in multiple online networks(chains) that they do not use the pallet sudo. We're trying to figure out how to take the pallet out of our network in order to leave everything to Governance.

For example, how are they doing Runtime Upgrades without the SUDO pallet? Or how do they increase the validator count?

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They use the Democracy pallet. This pallet also offers you the possibility to execute sudo calls.

See here.

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