Solana Community Rejects Governance Change
The Solana governance proposal tagged SIMD-0228 was turned down by the SOL community.
SIMD-0228 vote started in March and required 66.67 percent of yes votes to pass. The proposal had only received 43.5 percent of the vote, which was insufficient to pass by the time voting ended on Friday, March 14.
SIMD-0228 goal was to modify the SOL token’s inflation mechanisms. This proposal was intended to change the issuance of new SOL by accounting for SOL amounts deposited in the stake.
Stakeholders and validators of all sizes from various Solana ecosystem segments made up MOST of the voters. Interestingly, validators with huge stakes voted in favor of the proposal, whereas those with 500,000 SOL or less did not.
Multicoin Capital proposed SIMD-228, a governance proposal to change Solana’s inflation rate from a set schedule to a more dynamic, market-based emission mechanism
The inflation rate in Solana is c about 4 percent per year, with a set schedule that drops by 15 percent until it reaches a terminal rate of 1 percent per year. The annual 4 percent inflation rate would be replaced by an emission rate that varies according to the amount of SOL staked, according to SIMD-228. Throughout the Solana ecosystem, the proposal sparked intense discussions.
A dynamic model will lower inflation, stabilize the price of SOL, and encourage its use across decentralized finance (DeFi) protocols.
Opponents countered that pushing smaller validators offline and lowering staking rewards could undermine decentralization. Additionally, they noted that lowering inflation for a network as well-known as Solana might eventually hinder its expansion.
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