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We are looking to build private blockchain on Substrate. It should be scalable up to 300 validators. Like start with 3 and scale it to 300 later on. Does standard AURA suitable for this? Can AURA handle 300 validators without any problems? Or should we integrate Staking pallet instead?

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    When scaling to that number of validators with AURA, make sure to include a "punishment" mechanism to deal with (remove) inactive validators otherwise block production could be affected.
    – Bruno
    May 3, 2023 at 15:08

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AURA determines the next block author from a given set of validators. The staking pallet is used to manage funds at stake by network maintainers.

They can be used in correlation; AURA determines the next block author from a given set of validators, this set can be chosen based on the amount of funds at stake by network maintainers.

But to answer your question, I don't see a reason why you can't use AURA for a set of 300 validators.

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