{"id":125039,"date":"2025-03-14T03:19:08","date_gmt":"2025-03-14T03:19:08","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125039"},"modified":"2025-03-14T03:19:08","modified_gmt":"2025-03-14T03:19:08","slug":"solana-proposal-to-cut-inflation-rate-by-up-to-80-fails-to-pass","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125039","title":{"rendered":"Solana proposal to cut inflation rate by up to 80% fails to pass"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsA proposal to dramatically change Solana\u2019s inflation system has been rejected by stakeholders but is being hailed as a victory for the network\u2019s governance process.<br \/>\n\u201cEven though our proposal was technically defeated by the vote, this was a major victory for the Solana ecosystem and its governance process,\u201d commented Multicoin Capital co-founder Tushar Jain on March 14.<br \/>\nAround 74% of the staked supply voted on proposal SIMD-228 across 910 validators, but just 43.6% voted in favor of it, with 27.4% voting against it and 3.3% abstaining, according to Dune Analytics.\u00a0It needed 66.67% approval from participating votes to pass and only received 61.4%.<br \/>\nJain added that this was the biggest crypto governance vote ever, by both the number of participants and the participating market cap, of any ecosystem, chain or network.<br \/>\n\u201cThis was a meaningful scaling stress test \u2014 a social, rather than technical, stress test \u2014 and the network passed despite a wide stratification of diverging opinions and interests.\u201d<br \/>\n\u201cSolana SIMD-228 voter turnout was higher than every US presidential election in the last 100 years,\u201d claimed the team behind Solana\u2019s X account.\u00a0<br \/>\nSIMD-228 final vote count. Source: DuneSIMD-228 is a proposal to change Solana\u2019s (SOL) inflation system from a fixed schedule to a dynamic, market-based model. Instead of a pre-set decrease in inflation, this new system would dynamically adjust based on staking participation.<br \/>\nCurrently, supply inflation begins at 8% annually, decreasing by 15% per year until it reaches 1.5%. The new mechanism may have reduced it by as much as 80%, according to some estimates. Solana inflation is currently 4.66%, and just 3% of the total supply is staked, according to Solana Compass.\u00a0<br \/>\nHowever, such high inflation can increase selling pressure, reduce SOL\u2019s price and discourage network use. The proposed system would have adjusted inflation based on staking levels to stabilize the network and minimize unnecessary token issuance.<br \/>\nSolana\u2019s current inflation schedule. Source: HeliusBenefits would have included increased network security due to dynamically increasing inflation if staking participation drops, reaction to real-time staking levels rather than following a fixed, inflexible schedule, and encouraging more active use of SOL in DeFi, according to Solana developer tools provider Helius.\u00a0<br \/>\nHowever, lower inflation could have made it harder for smaller validators to stay profitable, the proposed model increased complexity, and unexpected shifts in staking rates might have led to instability.<br \/>\nRelated: Solana price bottom below $100? Death cross hints at 30% drop<br \/>\nThere was little reaction in SOL prices, with the asset dipping 1.5% on the day to just below $125 at the time of writing.\u00a0<br \/>\nHowever, it has tanked by almost 60% in just two months as the memecoin bubble burst. Solana network revenue has also slumped over 90% since it was primarily used to mint and trade memecoins.\u00a0<br \/>\nMagazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/solana-proposal-cut-inflation-rate-fails-to-pass?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsA proposal to dramatically change Solana\u2019s inflation system has been rejected by stakeholders but is being hailed as a victory for the network\u2019s governance process. \u201cEven though our&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125039"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125039"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125039\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125039"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}