Editor's PiCK
Solana (SOL), 'SIMD-0228' Vote 9 Days Away... "Possibility of 80% Inflation Reduction"
Summary
- The Solana (SOL) community announced that the vote on the 'SIMD-0228' proposal to adjust token issuance is just 9 days away.
- If the proposal passes, it could reduce the inflation rate by 80%, potentially decreasing annual SOL issuance to as low as 0.87%.
- However, some community members have raised concerns that this proposal may disproportionately benefit large stakers.
The Solana (SOL) community is just 9 days away from voting on the 'SIMD-0228' proposal, which adjusts token issuance based on investor staking participation rates.
On the 27th, cryptocurrency media Solid Intel reported via X (formerly Twitter) that "Solana could reduce its inflation rate by 80% if the SIMD-0228 proposal passes." However, concerns have been raised within the community that this proposal could favor large stakers, making it difficult for smaller validators to maintain profitability.
Meanwhile, SIMD-0228 is a proposal to introduce a dynamic model that automatically adjusts SOL token issuance according to staking participation rates. The structure reduces SOL token issuance when staking participation is high and increases issuance when participation is low. If this model is implemented, the annual SOL issuance could decrease from the current 4.5% to as low as 0.87%.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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