Solana Validators Vote on “SIMD-228” Inflation Adjustment Proposal

The Solana community is facing an important vote: the “SIMD-228” proposal could fundamentally change SOL’s token issuance. The goal is to replace the previously fixed inflation model with a dynamic system that adapts to market conditions.

What is the SIMD-228 proposal?

SIMD-228 is being co-authored by Tushar Jain and Vishal Kankani of Multicoin Capital and Max Resnick, senior economist at Anza. The proposal proposes making SOL emissions flexible so that they adjust to the staking share of the total supply. Currently, Solana’s inflation is 4.6% per year, falling by 15% annually until it stabilizes at 1.5%.

With SIMD-228, the inflation rate would change: If the staked share falls below 33%, emissions increase to encourage more validators to participate. If the staked share is high, inflation decreases to avoid overpaying for network security. This adjustment should lead to a more sustainable token policy in the long term.

Impact on the Solana ecosystem

If SIMD-228 is approved, the inflation rate could fall below 1% per year at the current staking rate of 65%. If staking participation drops to 33%, the issuance rate would increase accordingly to incentivize.

Proponents argue that the growing economic activity on Solana requires an adjustment of monetary policy. Lower inflation with a high staking ratio could make SOL scarcer and therefore more valuable. Critics, however, warn that fluctuating staking returns could deter institutional investors.

Different opinions in the community

Leading voices in the Solana community have already taken a position. Solana co-founder Anatoly Yakovenko and Helius CEO Mert Mumtaz support the proposal. Mumtaz argued that more flexible inflation could increase network stability.

Solana Foundation President Lily Liu, on the other hand, urges caution. She described SIMD-228 as “half-finished” and pointed out that unpredictable staking returns could unsettle investors.

Voting is scheduled for Epoch 753 and could begin as early as this weekend. Regardless of the outcome, the discussion on SIMD-228 has already provided valuable insight into the future of Solana.

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