- The SIMD-228 proposal could press inflation in Solana to less than 1% and dynamically adapt the staking premiums to the participation rates.
- The supporters see the advantages of economic stability and scarcity, while critics warn of possible centralization.
A new Governance proposal, SIMD-228, is to redesign the economic basis of the Solana blockchain by changing the manner of the output of Solana (SOL) brands. The community is divided, with strong voices for both and against the change. If the proposal is accepted, Solana’s inflation rate could drop to less than 1% and the incentives for staking could be redefined.
SIMD-0228:
As we head to the vote in epoch 753, I am proud to share that we have spent almost two months discussing SIMD-0228 in public. (Check screenshot for details).
Throughout the process, we incorporated several pieces of community feedback:
1. Transitioned from a… pic.twitter.com/0g138cFGY8
– Vishal Kankani (@Kankanivishal) March 6, 2025
The proposal provides for a flexible system for the output of tokens. Currently, Solana follows a fixed annual inflation rate of 4.6 %, which drops by 15 % each year until it levels off at 1.5 %. The new method would be based on how many people use their tokens. If the missions fall below 33%, the rewards are increased to achieve more operations. When too many people get in, the rewards shrink, which lowers inflation.
65 % of SOL-TOKEN are currently covered. Experts predict that with the new method, inflation could drop to less than 1 % per year. This shift could make it more difficult to get SOL, which could increase its value while the token offer is checked. A vote is planned for era 753, which could begin this weekend.
Community leaders argue about proposal
The discussion about SIMD-228 has attracted the attention of important personalities in the Solana room. Mert Mumaz, the founder of Helius, supported the idea and said that the network must change its financial working method. In an X-posting, he made it clear that the adoption of SIMD-228 would strengthen the network. Helius even has one Detailed breakdown published about what the proposal could mean.
On the other hand, the President of the Solana Foundation, Lily Liu, warned for caution. She criticized the proposal as “too half -baked” and warned that unpredictable deployment can be deterred institutional investors. Your concerns underline general uncertainty about how the markets will react when the proposal is implemented.
The authors of the proposal, Jain and Kankani, have defended their work and emphasized that they has been discussed for almost two months. They argue that feedback from all over the community has been incorporated into the proposal, which makes him a well -checked strategy for the economic future of Solana.
Possible effects
The proponents claim that the new model could avoid hundreds of millions of dollars of unnecessary loss of inflation, from which the long-term Sol owners would benefit. The supporters argue that the network will gain value over time, since the SOL offer is better tailored to demand.
The Zuca engineer Trent.sol praised the proposal because he creates a balance between network security and economic sustainability. The proposal aims to adapt the token emissions to the actual demand for missions and ensure that Solana does not pay too much for the safety of the network if the participation is already high.
However, critics fear unintentional consequences. Smaller validers could experience a decline in profits, which could lead to stronger centralization if only large players can afford to work profitably. In addition, any incorrect calculations in the new emission model could destabilize incentives for the use and lead to short -term fluctuations in the value of SOL.
A step towards ultrasonic money?
For those who have the long-term growth of Solana in the eye, SIMD-228 could be a crucial moment. It is estimated that the proposal could lead to a reduction in total emissions by 20.9 %, which adapted to the combination of the token creation. This change could increase the scarcity of Sol and increase its attractiveness for long -term investors.
The changeover would also lead to a better predictability of Solana’s monetary policy. Instead of a rigid, planned inflation, the new system reacts dynamically to the network conditions, which could stabilize the token value and at the same time reward active participants. In addition to the SIMD-228 proposal, Solana also revealed a lattice-based hashing system to solve the “State Growth” problem
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