Solana Foundation President Raises Concerns Over SIMD-0228 Proposal
Multicoin Capital introduced a proposal, SIMD-0228, to change Solana’s emission mechanism, aiming to reduce inflation from 4.5% to below 1%. The proposal suggests a market-based system for emissions tied to staking percentages.
Key points include:
- Current staking rate is 63%; the proposal targets a 50% rate.
- Criticism from Lily Liu of the Solana Foundation highlights potential risks in attracting institutional investors due to unpredictable staking rewards.
- Liu cites past experiences with ATOM, where fluctuating yields deterred institutional demand.
- Proponents argue that reduced emissions could facilitate institutional adoption and the approval of SOL ETFs by the SEC.
- The vote on SIMD-0228 is scheduled for March 6.