According to VANECK, an asset manager, Solana’s planned protocol upgrade is important for the long -term health of the network, but can be hit by the import of validation.
In March, Solana’s validity tests will vote for two proposed upgrades known as Solana Improvement Documents (SIMDS). We will vote for a blockchain protocol designed to ensure rewards for stakes and adjust the inflation rate of the basic sol (sol) tokens of the network.
Matthew Sigel, a Vaneck Digital Asset head, caused “important controversy” in the Vaneck Digital Asset Head on the March 4th X POST, except for 95%of small operators.
SIGEL said, “These changes can reduce compensation, but I think that lowering inflation is a valuable goal of strengthening Solana’s long -term sustainability.
SOL’s Staked Supply has increased since 2023. Source: Coin
relevant: Solana’s jito staking pool exceeds $ 100m in monthly tips: Kairos Research
Rewarding staker
The first SIMD 0123 said, “We will introduce a mechanism in the protocol for distributing Solana’s priority fees to the valid takers,” Sigel said. The trader can pay more quickly by paying an additional cost to the validation tester.
SIGEL says that priority fees account for 40%of their network revenue, but the current validation instrument does not need to share the commission with Starkers. Validation tests must deliver other types of profits, such as voting compensation.
The proposal, which can be voted on March 6, promotes stake compensation, as well as “we are interfering with the entire transaction contract between the merchant and the validity inspector and strengthening the chain execution.”
Staying includes locking soles with collateral along with the effective tester of Solana blockchain network. Starkers receive SOL payments from network rates and other rewards, but there is a risk of losing “slash” or SOL collateral if the validity test machine is wrong.
Solana network fees and imports from tips. source: Multiple capital
Inflation adjustment
According to SIGEL, the second SIMD 0228 is the “most influential proposal in consideration.”
He adjusts the inflation rate of SOL to infringe on the ratio of token supply, “reducing the dilution and sales pressure of the stake compensation as income,” he said.
According to Coin Metrics, shared with CoinTelegraph, Solana’s inflation rate as of February is 4%in the initial 8%ratio, much higher than the 1.5%terminal inflation goal. Inflation is currently reduced at a fixed rate of 15%every year.
According to Chaincatcher, the second proposal was mainly drafted by Vishal Kankani of Multicoin Capital. Multicoin, a venture capital company, owns a “important position” in Solana’s most popular staying pool, JITO.
According to Developer Jito Labs, 93%of Solana’s validic tests as of December use Jito’s software to maximize the import of block construction.
This suggestion occurs when asset administrators urge regulators to allow the Sol Exchange-Traded fund (ETF) to be listed on the US exchange. The issuer also asks our regulators to strengthen their profits by allowing the ETF’s cryptocurrency steak.
Bloomberg Intelligence sets the probability that SOL ETF will be approved by 2025 to about 70%.
magazine: Crypto is so big for 4 years, ‘No one can shut down’: kain warwick, infinex