Solana Proposal SIMD-0228 Aims to Reduce SOL Inflation by 80%
The Solana proposal SIMD-0228 aims to reduce SOL's inflation rate significantly. At press time, it received support from 37.8% of network validators.
- 746 validators voted on the proposal, representing nearly 58% of active validators.
- 37.8% voted in favor, 18.5% against, and 1.2% abstained.
- The proposal is likely headed for failure as voting ends at Epoch 755 in about 11 hours.
- It proposes a market-based token emission mechanism to optimize security costs.
- Estimates suggest SOL's inflation rate could drop from 4.5% to approximately 0.87%, an 80% reduction.
- Tagus Capital noted that approval could increase SOL's value but may lower staking rewards, impacting smaller validators and decentralization.
Logan Jastremski from frictionless Capital emphasized the potential benefits of reducing inflation, given the significant growth in Solana's on-chain volumes since 2023.