Solana Proposal SIMD-0228

The Solana proposal, called SIMD-0228, could drastically reduce SOL’s inflation rate. At press time, it had the support of 37.8% of the network validators.

According to Dune Analytics, 746 validators—nearly 58% of the total 1334 active validators—have voted on the proposal. The breakdown of votes is as follows:
– 37.8% in favor
– 18.5% against
– 1.2% abstained

As of now, the proposal seems headed for failure, with voting concluding at Epoch 755, expected to be reached in about 11 hours.

The proposal advocates for a market-based token emission mechanism to ensure the network doesn’t overpay for security. It’s anticipated that this will positively affect Solana-based decentralized finance and enhance liquid on-chain SOL markets.

Logan Jastremski, co-founder and managing partner at Frictionless Capital, stated, “Since 2023, the Solana network has transformed significantly. Daily on-chain volumes used to be below $100 million but now consistently reach billions. We believe now is the right time to reduce the inflation rate in line with SIMD-0228.”

There are estimates suggesting the proposal could lower SOL’s inflation rate from 4.5% to around 0.87%, an 80% reduction.

Tagus Capital anticipates this could positively impact SOL’s price, explaining, “If approved, it would significantly reduce staking rewards and fresh SOL supply, potentially boosting its value. However, lower rewards could push smaller validators out, raising concerns about network decentralization.”

Summary

Concerns arise over Solana’s proposal SIMD-0228, aiming to lower SOL inflation from 4.5% to 0.87%, supported by 37.8% of validators, but facing potential failure.