Solana (SOL) Community Initiates 'SIMD-0228' Vote... "Possibility of 80% Inflation Reduction"
Summary
- The Solana (SOL) community announced that voting on the 'SIMD-0228' proposal has begun.
- If the proposal passes, inflation could decrease by up to 80%, and issuance could be reduced to as low as 0.87%.
- However, there are concerns that it could favor large stakers while making it difficult for smaller validators to maintain profitability.
The Solana (SOL) community has begun voting on the 'SIMD-0228' proposal, which adjusts token issuance based on investor staking participation rates.
On the 8th, SolanaFloor announced via X (formerly Twitter), "Voting has begun on Solana's SIMD-0228 proposal," adding that "if the proposal passes, inflation could decrease by up to 80%."
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 increases and increases issuance when participation decreases.
If this model is implemented, the annual SOL issuance could decrease from the current 4.5% to as low as 0.87%. However, concerns have been raised within the community that this proposal could favor large stakers, making it difficult for smaller validators to maintain profitability.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
