Validators on the Solana (SOL) network are trying to change the issuance of native cryptocurrency, as the trend seems irreversible to support approval of the SIMD-0228 proposal (Solana improvement document).
The vote, which runs until the end of the Epoch 755 (about 24 hours due to closure), begins on March 8th with a clear trend after four days. Average average 70% of validators support SIMD-0228. In Solana, epochs are time intervals of approximately two days, during which Stoking rewards are distributed and new tokens are broadcast.
Current data for the voting for the SIMD-0228 proposal can be seen in the following image. At Celeste, we rejected the percentage of votes (almost 68%) that approved the new solar emissions and purple initiative that rejected it (almost 30%). The remaining percentages were refrained from voting.
Similarly, on another voting site opened for Validador Solblaze against SIMD-0228, votes reflect the same percentage trend.
What is the purpose of the SIMD-0228 proposal?
As reported by Cryptootics, SIMD-0228 is Participation. The initiative says that instead of having a fixed inflation rate of 15% per year (current system), verification rewards vary dynamically with delegated solar levels.
The hypothesis of the creators of that proposal is that if fewer people participate in staking, sol emissions reduce their supply and delivery. It ultimately brings a profit to the price of that token. On the contrary, as participation decreases, the broadcast increases, encouraging more users to delegate the sun and maintain network security.
According to the creators of the SIMD-0228 initiative, their proposal could take at least six months to implement.
Despite the vote, the Solana community by SIMD-0228 has a counter point
Although 70% of validators supporting SIMD-0228 are eloquent evidence that the majority of the Solana ecosystem approves the proposal, There is a stance against these changes.. Cryptonotics has informed that some of the community believe that changes can have counterproductive effects at a level of decentralization and security.
For example, the team behind Solana’s liquid staking platform, Dalibador Solblaze, explained that reducing rewards means that many users are looking for more profitable alternatives, potentially reducing the mandate of the Solana ecosystem. This allows you to subtract the number of validators, supporting power centralization. Furthermore, Solblaze emphasizes that a decrease in validators will have a negative impact on network security.
Meanwhile, according to the SIMD-0228 document, the proposal provides an alternative for balliters to generate additional revenue. For example, platforms such as Jito Labs allow Solana Validators to obtain benefits and incentives through MEV Rewards (Minor extractable valuesadapt to Solana.”Maximum extractable values”).
Solana Foundation developers oppose SIMD-0228
Solana Foundation developer Jonas Hahn also opposed the initiative. According to its vision, SIMD-0228 affects Solana’s staking levels, reducing it to 40% of the solar supply, but now, according to Solkan data, about 64% of the total solar supply is staking.
Hahn explained that a low level of goodness means that The number of votes will be reduced Approving a critical decision is risky.
“I will continue to vote for the old curve rather than the 228. The reason is that the current curve is already market-based, but I don’t see any better ways to spend 1.5 billion on the network than encouraging staking. More interest means more people vote for the proposal. Please fix me if I’m wrong. But the sun is only 40% and 66% of the 30% participation is needed to approve the proposal. That percentage seems dangerously low for important governance decisions.”
Jonas Hahn, developer of the Solana Foundation.
In line with the same policy, X users have indicated their rejection of the new Sun issue proposal.
“I don’t like it for a number of reasons. Many defi protocols are severely affected, and liquid staking can affect projects like Camino and Sankum. Additionally, it opens the door for the sun to become the cheapest and most expensive long position. All of this tends to concentrate the network even more on those that undermine the smallest validators.
Social Network X users.
Despite these questions, proposals and voting are still underway. It is estimated that at about 24 hours at the end of Epoch 755, most validators will have their balance leaned, and that the proposal for SIMD-0228 will be officially adopted and open a new phase of solar emissions under standards adjusted for staking participation.
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