The post Solana monetary decisions in the spotlight  appeared on BitcoinEthereumNews.com.

This is a segment from the Lightspeed newsletter. To read full editions, subscribe. The Solana world has worked itself into a frenzy over SIMD-0228, a proposal to change Solana’s inflation mechanism. It’s either a ploy to destroy Solana’s decentralization or will only fail to pass due to CIA-style sabotage. I was sure voting on the proposal would be pushed back, but as far as I can tell, voting is still slated to begin in Solana epoch 753 at around 8:30 pm ET.  Helius CEO Mert Mumtaz, Blockworks Research data lead Dan Smith, and yours truly broke the proposal down in this week’s Lightspeed podcast roundup episode. SIMD-0228 proponents say Solana is overpaying for security and market-based mechanisms are more efficient, while detractors say the reduction of issuance rewards could centralize the network’s power.  My editors tell me I need to add analysis to my reporting on the news, however, so I’ll give you my take.  Although network centralization is a concern — MEV tips will contribute proportionately more REV, so Jito will have relatively more power, for instance — what’s more important is that Solana doesn’t lose the scrappy pragmatism that made it so popular in the first place. Issuance is probably too high, and validator revenue should start coming from real value creation in the form of MEV and priority fees. SIMD-0228 should probably pass. We’ll have more to say on that next week, but I think there’s an even more interesting conversation to be had around SIMD-0096, a move to stop burning half of Solana priority fees that was implemented in February. Since 100% of the fees now go to validators, Solana’s inflation has climbed a bit — from 3.7% to 4.6% on an annualized basis, Blockworks Research analyst Carlos Gonzalez Campo told me on this week’s other…

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Filed under: News - @ March 7, 2025 10:20 pm