Two protocol update proposals are currently in discussion within the Solana network to support its long-term health and improve its integrity.
Changes in the Reward System
The first proposal, SIMD 0123, suggests sharing the transaction priority fees with validator stakers. This adjustment aims to facilitate faster transaction approvals by preventing unnecessary off-chain agreements.
Regulation of Inflation Rate
The second proposal, SIMD 0228, seeks to adjust the inflation rate of the SOL token based on the rate of staked supply. Supported significantly by Multicoin Capital, this proposal could help lower token inflation to 1.5% in the long run.
Potential Implications for Solana's Future
These updates raise concerns about potential reductions in validator incomes of up to 95%. Managers indicate that if the proposals are accepted, a more structured income sharing between stakers and validators could be achieved. The implementation of the proposed updates could have far-reaching effects on transaction costs, inflation rates, and user yields.
The final decision will be regarded as a decisive factor in the future performance of the Solana ecosystem, with asset managers requesting a review of regulations to enhance the network's competitiveness in international markets.
