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It’s been three weeks since Solana’s Validators failed to pass SIMD-0228. SIMD-0228 is a governance proposal aimed at shifting Solana issuance to a market-based mechanism and reducing inflation in the process. However, the effective person who maintains partially from Solana’s inflation voted for this measure, but the issue still doesn’t feel like a resolved question.
With the implementation of SIMD-0096, which removed Solana’s priority fee “Burn”, the network has lost its layoff mechanism, and many ecosystem participants feel that the network is “overpaid” due to inflation for financial security. There are no close revisions to this in the short term, but the former head of strategy at the Solana Foundation has become counterattack.
Austin Federa’s “left curve 228” pitch says Solana should accelerate the developmental curve of the network and “see if something breaks.”
Solana’s inflation curve sets the current issue rate at around 4.6%, shrinking to 1.5% in an increment of 15% for every 180 epochs. Federa, co-founder of Crypto Startup DoubleZero’s Buzzy Internet Infrastructure, increases her growth rate to 30% for every 180 epochs.
Rounding the 180 epoch into one year, Federa’s proposal would lower Solana’s inflation rate to around 1.5% in about three years. The advantage of such a scheme is that Solana prevents Solana from preventing overpayments for security without creating uncertainty in inflation.
The proposal has some heat, especially from Kevin Ricoy, founder of Crypto Media Startup Allmight. Likoy claims that Bitcoin’s value comes from an unchanging inflation mechanism, but has taken the chaff for “continuously messing with monetary policy with well-meaning autistic people playing central bankers.” He followed up with a more measured rebuttal.
