Solana's Proposed Changes May Impact Annual Sell Pressure

According to BlockBeats, on March 5, VanEck's Director of Digital Asset Research, Matthew Sigel, estimated that the combined effects of SIMD 096 and SIMD 0228 could reduce Solana's annual sell pressure by $677 million to $1.1 billion. While SIMD 096 increases tax-related sell pressure by removing the 50% priority fee burn mechanism, SIMD 0228 is expected to fully offset this impact. Previously reported, Solana's SIMD 0228 proposal is now open for voting, aiming to shift SOL issuance to a market-driven model. The vote is expected to occur in about 10 days. The proposal sets a target staking rate of 50% to enhance the network's security and decentralization. If more than 50% of SOL is staked, issuance will decrease, reducing yields to discourage further staking. Conversely, if less than 50% is staked, issuance will increase to boost yields and encourage staking. The minimum inflation rate will be 0%, while the maximum will be determined by Solana's current issuance curve.