The Solana (SOL) community is prepared for relevant facts. This is a vote for the SIMD-0228 proposal, which proposes changes in emissions and sunset.
The validator is epoch 753, scheduled to start around March 8, 2025, at 13:52:42 UTC, until the end of Epoch 755. epoch This is generally a specific time interval of 2-3 days in Solana, during which activities are carried out, such as distribution of reward staking and the release of new token suns due to inflation.
In that context, Solblaze, the team behind Solana’s liquid staking platform, believes the proposal should not be approved.
“The Dangerous Proposal (SIMD-0228) threatens to destroy Solana’s decentralization and paralyze the defi ecosystem. Validators will vote immediately for SIMD-0228. Balidador Solblaze will not vote firmly.”
Solblaze Publications x.
Currently, the Solana network has 1,353 validators, and according to Solsan, there are a total of 380 million suns, of which 130,000 are in the Solblaze Validator account (currently more than $18 million).
Anatoly Yakovenko, reported by Cryptonotics, was in favor of SIMD-0228, which Solana co-founder Anatoly Yakovenko, which contains a simple message in X, without deepening past errors.
“There’s an opportunity to correct the mistakes of young people.”
Anatoly Jacovenko, Kohundadador de Solana.
What is the purpose of the SIMD-0228 proposal?
« DocumentSolana Improvement Document 0228» (Simd, Solana Improvement Document) The initiative is described as a “program emission mechanism based on permanent participation rates.”
In the current system, SOL emissions follow a predefined calendar of fixed inflation. Decreases by 15% per yeardistributes new coins as rewards for those who delegate validators and tokens.
The new proposal seeks to dynamically adjust inflation and staking incentives, taking into account the percentage of cryptocurrency shares. In other words, it aims to establish a system that changes the emission rates of new currency. Depending on the number of participants with a network con su staking.
The objectives raised by the developer are as follows: “As participation rate falls below 50%, issuance increases, encouraging more actors to staking, and if they cross that threshold and avoid excessive inflation, it decreases.”
The hypothesis of the creator of that proposal is that if few people participate in staking, SOL emissions will reduce their supply and delivery, ultimately benefiting the price of the asset.
The key to raising concerns for Solblaze is how these adjustments, in theory, are more intensely affected by small validators. Reducing rewards means that Many users are looking for alternatives More advantageous to obtain potential yields that potentially subtract delegations of the Solana ecosystem
On the other hand, a reduction in staking rewards will encourage validators Rely on MEV suppliers essentiallylike the Jito platform, it is one of the major incentive facilitators through Solana’s MEV. Why does the SolBlaze statement emphasize the functionality of the JITO site?
Two of the three creators of SIMD-0228, Tushar Jain and Vishal Kankani, are Solana On-Chain analytics site, ANZA, as they are co-founders of Multicoin Capital, Jito Investor (Manx Resnick, the third creator of SIMD-0228). According to Kankani, his proposal for improvements was implemented. At least take it 6 months.
In the case of Solblaze, this concentrates validation power in the hands of entities with economically heavy weight over the long term due to the decentralization and distribution of benefits within the network.
Meanwhile, Ben Hawkins, head of the Solana Foundation’s staking ecosystem, also backs the initiative, claiming that the network can “pay more for security with a fixed inflation of 4.5%.” Hawkins proposes that the dynamic model of SIMD-0228 reduces inflation to 0.87% with 65% staking. Relieves sales pressure. The CEO of Helius Labs, who calls himself “Mert” on X, supports the proposal that says it will “make the network stronger.”
SIMD-0288 provides an alternative to increase validator incentives
SIMD-0228 then promotes an alternative revenue model for validators. How can you get rewarded? Mev (Minor extractable valuesadapt to Solana.”Maximum extractable values“). MEV is Maximum value that the validator can extract (for the sun) Repeat, include, or exclude transactions during block production.
In the Solana context, particularly within the framework of the proposal for SIMD-0228, validators can use MEVs to earn additional revenue.
However, MEV practice (maximum removable values) can be used in malicious ways, such as predicting user transactions.Front Running)o Manipulate transaction order For your own benefit.
However, platforms such as Jito Labs allow Solana Validators to gain profits and incentives. Without relying on these harmful practices. Among its tools, Jitosol stands out. Additional MEV gain.
These additional rewards from MEV come from hints (Tip) Search engine pays Valitter to include transaction packages (bundle) When prioritizing these profitable operations, blocks structured by Jito-Solana clients provide higher profits without compromising the network.
Solblaze developers fear Solana’s safety
From Solblaze, they argue that the changes provided by SIMD-0228 will not only bring about decentralization, but also the safety of Solana, Soil, and so on.
According to the team on the platform, the dynamics of significantly reducing staking rewards are Reduced amount of wagering,This will range from 42% of supply (from sunset) to 42%.
This descent It has a negative impact on network safetybecause in a Participatory Test Model (POS), the amount of blocked tokens to validate transactions directly affects ecosystem robustness and decentralization. SolBlaze estimates that SIMD-0228 will reduce rewards. 70% and 80% In the current scenario.
“People think reducing Solana inflation will have a positive effect on default solar prices. What happens when the lowest staking rehasal people stop staking and sell sun to get better yields elsewhere? We shouldn’t implement economic policies based on hypothetical price predictions.”
Solblaze Publications x.
Matthew Sigel, a Vaneck analyst following SolBlaze Line, is opposed to the SIMD-0228 initiative. Shigeru warns that it will fall “95% of staking revenue” It centralizes large networks of actors such as Coinbase and Binance to put small validation at risk. Vaneck analysts estimate that “inflation will fall to 0.87%, but many of the current balters will not survive.”
Challenging the stability of Solana’s defi
According to Solblaze, the slowdown ultimately affects some protocols as well defi,The performance generated by Sun stake is closely related to the investment strategy and the returns offered by various financial platforms.
A rapid reduction in rewards is possible Dissuade people from participating in many activities Relevance, as a loan I’ll build up farming Other network-based products generate “large-scale fluidity output” and complications in the operationality of the project based on model integration.
James Ho, co-founder of Modular Capital, supports the measures imposed on SIMD-0228, estimating it as “reduces emissions to 1-3% and balances security and the economy,” highlighting an approach to a “market-based emissions model.”
In this way, there is time to start voting for validators, but that position reflects the tense debate between Solana’s sustainability and decentralization, with some actors in favor and others opposed.
(tagstotranslate)Blockchain
