Reporting from The Block: Solana's latest governance proposal, SIMD-228, failed to pass the required 66.67% of the support votes.
SIMD-228 aims to reduce inflation in SOL tokens by introducing a dynamic emissions model based on staking participation. About 74% of staked SOLs participated in the vote for SIMD-228, which is considered one of the largest crypto governance votes in history.
Solana's inflation-reduction governance proposal, SIMD-228, failed to pass the ballot with a record vote turnout, which closed on Thursday.
Solana Improvement Document 228 proposes to reshape the network's token economy by replacing a fixed inflation plan with a dynamic market base system that aligns the issuance of SOL tokens based on staking participation.
The proposed emissions model aims to reduce Solana's inflation rate to below 1% annualized, with the current staking rate of around 65%, while the current fixed inflation plan is set at 4.6% per annum, decreasing by 15% annually until it stabilizes at 1.5%.
Proponents of SIMD-228 argue that this has the potential to make SOL more scarce and valuable, benefiting long-term holders, while opponents argue that it could negatively impact the profitability of small stakers and validators.
Voting began on March 6 in Solana Epoch 753 and required 66.67% of the "yes" votes to pass. The vote ended at Epoch 755 with 43.6% of eligible voters voting "yes" and 27.4% voting "no," for an overall support of 61.4%.
"So the distribution will remain as it is," Mert Mumtaz, CEO of Solana's development platform, Helius Labs, said on X.
SIMD-228 has a 74% voter turnout rate, which is higher than in any U.S. presidential election in the past 100 years, Solana writes on X. In the 2024 U.S. election, cryptocurrencies are in the spotlight, with a participation rate of around 64%.
"SIMD-228 is the largest crypto governance vote ever – both in terms of the number of participants and the market capital involved," Tushar Jain, co-author of SIMD-228 and co-founder of Multicoin Capital, said in a post on X. "This vote is a testament to the prosperity and complete decentralization of the network."
On the other hand, another governance proposal, SIMD-123, passed at the end of Solana Epoch 755. SIMD-123 proposes to introduce a mechanism that would allow validators to share a portion of the revenue with their stakers, while some validators currently opt for offline solutions to incentivize stakers. The proposal passed with nearly 75% of the votes in favor.
This change is expected to increase transparency by officially moving the reward distribution on-chain.
"SIMD-228 didn't pass, but 123 passed...... Although both proposals are aimed at reducing validator revenue," said Anatoly Yakovenko, co-founder of Solana Labs. "The opposition to 228 is not motivated by self-interest."
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Solana's key SIMD-228 proposal failed to pass the validator vote, and the token emissions remained unchanged
Reporting from The Block: Solana's latest governance proposal, SIMD-228, failed to pass the required 66.67% of the support votes.
SIMD-228 aims to reduce inflation in SOL tokens by introducing a dynamic emissions model based on staking participation. About 74% of staked SOLs participated in the vote for SIMD-228, which is considered one of the largest crypto governance votes in history.
Solana's inflation-reduction governance proposal, SIMD-228, failed to pass the ballot with a record vote turnout, which closed on Thursday.
Solana Improvement Document 228 proposes to reshape the network's token economy by replacing a fixed inflation plan with a dynamic market base system that aligns the issuance of SOL tokens based on staking participation.
The proposed emissions model aims to reduce Solana's inflation rate to below 1% annualized, with the current staking rate of around 65%, while the current fixed inflation plan is set at 4.6% per annum, decreasing by 15% annually until it stabilizes at 1.5%.
Proponents of SIMD-228 argue that this has the potential to make SOL more scarce and valuable, benefiting long-term holders, while opponents argue that it could negatively impact the profitability of small stakers and validators.
Voting began on March 6 in Solana Epoch 753 and required 66.67% of the "yes" votes to pass. The vote ended at Epoch 755 with 43.6% of eligible voters voting "yes" and 27.4% voting "no," for an overall support of 61.4%.
"So the distribution will remain as it is," Mert Mumtaz, CEO of Solana's development platform, Helius Labs, said on X.
SIMD-228 has a 74% voter turnout rate, which is higher than in any U.S. presidential election in the past 100 years, Solana writes on X. In the 2024 U.S. election, cryptocurrencies are in the spotlight, with a participation rate of around 64%.
"SIMD-228 is the largest crypto governance vote ever – both in terms of the number of participants and the market capital involved," Tushar Jain, co-author of SIMD-228 and co-founder of Multicoin Capital, said in a post on X. "This vote is a testament to the prosperity and complete decentralization of the network."
On the other hand, another governance proposal, SIMD-123, passed at the end of Solana Epoch 755. SIMD-123 proposes to introduce a mechanism that would allow validators to share a portion of the revenue with their stakers, while some validators currently opt for offline solutions to incentivize stakers. The proposal passed with nearly 75% of the votes in favor.
This change is expected to increase transparency by officially moving the reward distribution on-chain.
"SIMD-228 didn't pass, but 123 passed...... Although both proposals are aimed at reducing validator revenue," said Anatoly Yakovenko, co-founder of Solana Labs. "The opposition to 228 is not motivated by self-interest."