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Does the SignedExtension (validate) get executed on a nested call (e.g. sudo.call, scheduler.schedule)? In other words, the call within the call.

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No, the SignedExtension::validate will not be called for nested calls. If you want to filter certain calls, you can use BaseCallFilter in your runtime. This filter is checked before each dispatch of a call. However, there are also exceptions to this as pallets like sudo dispatch without checking any filters.

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