Solana Developer Proposes Increase in Staking Reward Reduction Rate

According to ChainCatcher, a researcher from the Solana developer platform Helius, known as Lostintime101, proposed on November 21 to increase the annual reduction rate of Solana staking rewards from 15% to 30%. This measure aims to prevent the issuance of nearly $3 billion in new SOL tokens. The proposal highlights that the current annual reward rate of 6% is excessively high compared to Ethereum's 3%, leading to increased inflation and selling pressure, as some stakers need to sell tokens to pay taxes. A similar proposal in March this year received 61% support but failed to meet the 66.67% threshold required for approval. Opponents of the proposal are concerned that reducing rewards could harm decentralization by making validator nodes unprofitable. The number of Solana validator nodes has decreased by 64%, from 2,500 at the beginning of 2023 to less than 900 currently. The proposer estimates that only 84 validator nodes would become unprofitable in three years, suggesting a limited impact.