Solana Proposal Faces Uncertain Future Amid Validator Votes

According to CoinDesk, a proposal known as SIMD-0228, which aims to significantly reduce Solana's inflation rate, is currently under consideration by the network's validators. At the time of reporting, 37.8% of the validators supported the proposal. Data from Dune Analytics indicates that 746 validators, representing nearly 58% of the total 1,334 active validators, have participated in the voting process. Of these, 37.8% voted in favor, 18.5% opposed, and 1.2% abstained. As it stands, the proposal appears unlikely to pass, with voting set to conclude at Epoch 755, expected to occur in approximately 11 hours. The proposal advocates for a market-based token emission mechanism to prevent the network from overpaying for security. It is anticipated to positively impact Solana-based decentralized finance and enhance liquidity in on-chain SOL markets. Logan Jastremski, co-founder and managing partner at Frictionless Capital, highlighted the network's evolution since 2023, noting a significant increase in daily on-chain volumes from below $100 million to billions. He emphasized that this progress makes it an ideal time to align the inflation rate with SIMD-0228. Estimates suggest that the proposal could reduce SOL's inflation rate from 4.5% to approximately 0.87%, marking an 80% decrease. Tagus Capital predicts that this could positively influence SOL's price. The firm noted that if the proposal is approved, it would substantially lower staking rewards and the fresh supply of SOL, potentially increasing its value. However, they also cautioned that reduced rewards might drive smaller validators out of the network, raising concerns about decentralization.