- Solana insiders are about to go head-to-head on the SIMD-0228 inflation proposal.
- This proposal could cut inflation by 80%, but at the cost of a 70-80% drop in staking rewards. Ouch!
So, here we are. Solana validators are fighting like cats and dogs ahead of the big vote on the SIMD-0228 inflation proposal. Things are getting ugly—just the way we like it.
The proposal, cooked up by the VC big shots over at MultiCoin Capital, is supposed to slash SOL emissions while keeping network security at a reasonable price. Simple enough, right? Nope. This would turn the current fixed SOL emission schedule into a dynamic one, and not everyone’s thrilled about it.
Enter stage left: SolBlaze. One of the validators, they’re like the voice of doom in this saga. They claim this proposal is an attack on network security, and they don’t mince words.
“SIMD-0228 will cause the amount of SOL staked on the network to drop like a rock—from 63% of the supply to a mere 42%. And let’s not forget, in a Proof of Stake model, more stake = more security. You do the math, folks. This directly attacks network security.”
The drama doesn’t end there. If the proposal goes through, staking yields could take a nosedive—like a 70-80% drop. Investors would be out the door faster than you can say “better returns elsewhere.”
Right now, a hefty 390 million SOL is staked (about 63% of the total supply), earning an 8% yield. But if SIMD-0228 gets the green light, that yield could plummet to a measly 1.34%.
But hey, let’s try to look on the bright side. At least inflation could be slashed by 70-80%, and that could give SOL’s value a nice little boost. Small victories, right?
Institutions vs. Solana Validators: The Ultimate Faceoff
Meanwhile, Lily Liu, the big boss over at the Solana Foundation, isn’t sold on this proposal either. She thinks it might mess with SOL’s value in ways we don’t want to imagine.
“228 is way too half-baked. Changing network parameters could be great for security or terrible for the asset, and vice versa. We need to take a system-wide view before making a move this big.”
So, Liu’s pushing for more time to review the proposal. Can you blame her?
BitGo CEO Mike Belshe is singing the same tune, warning that the proposal might make big players run for the hills.
“I think the big holders will pull back significantly. Solana’s earned a lot of trust, but this proposal could mess with that. Proceed with caution.”
But not everyone’s on the side of caution. Some VCs are all-in on this proposal. Chris Burniske, former crypto honcho at ARK Invest, thinks SIMD-0228 is the right move.
“I’m in favor of SIMD-0228. In the long run, inflation is just a means to an end. Real yield comes from demand-side to supply-side, and this proposal is part of getting there.”
Burniske’s got his eyes on the prize: “This is a step in the right direction, in line with Solana’s maturity.”
But wait, here comes Vishal Kankani, a partner over at MultiCoin Capital, trying to clean up the mess. He assures everyone that most of the feedback has been taken into account, and the proposal will be phased in gradually. Phew, right?
“We’ve ended up with a much more robust emissions curve as a result of all this feedback. Don’t worry, we got this.”
The vote begins in epoch 753, which lands around March 9th or 10th, so buckle up, because it’s about to get real. The outcome? Well, that’s still a mystery, and it could mean big things for SOL’s price. Right now, SOL’s sitting at $143, which is a 51% drop from its high of $295. What a ride.
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2025-03-08 05:44