Solana Proposal, Which Could Cut SOL Inflation By 80%, Gains Limited Validator Support

The Solana proposal SIMD-0228 aims to dramatically cut SOL's inflation rate from 4.5% to approximately 0.87%, garnering 37.8% support from validators thus far. With almost 58% of active validators voting, the proposal seems unlikely to pass as the voting deadline approaches. Advocates argue that a market-based token emission mechanism could enhance decentralized finance and improve SOL market liquidity. However, concerns are rising about potential impacts on decentralization, as reduced staking rewards may push smaller validators out of the network. As Solana's on-chain activity has surged, many see this as a pivotal time for inflation adjustments. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: CoinDesk