Solana is discussing two proposals aimed at enhancing network stability, potential validator earnings reductions, and user experience implications.
New Reward System
The initial proposal, SIMD 0123, intends to allocate transaction priority fees to validator stakers. This strategy is designed to expedite transaction approvals and reduce reliance on off-chain arrangements.
Changes in Inflation Regulation
The second initiative, SIMD 0228, aims to modify the inflation rate of the SOL token in correlation with the quantity of staked supply. This move seeks to minimize dilution and bolster stakers’ earnings. Endorsed by Multicoin Capital, the proposal aspires to decrease token inflation to 1.5% over time.
Impact of Updates on Users
Concerns have arisen regarding the possibility of validators experiencing income reductions of up to 95% if these proposals are accepted. Managers suggest that a more organized income distribution model could be achieved between stakers and validators. The potential adoption of these updates could significantly influence transaction expenses, inflation levels, and yield opportunities for users. The upcoming decisions will be crucial for the ongoing viability and performance of the Solana ecosystem.
Solana updates could significantly affect user interaction with the network and validator profitability.
