Proposal for Solana's SIMD-0228 to Minimize Inflation Rejected in Vote
Slashed Solana Proposal Misses the Mark
The much-touted SOL governance proposal to slash the blockchain's inflation rate took a nose dive, failing to gather the necessary support from validators.
Enter SIMD-0228, a proposal spearheaded by Multicoin Capital and economist Max Resnick, aiming to slash Solana's SOL issuance by an astonishing 80%. The goal? Pump the brakes on Solana's current 4.5% inflation rate,拉倒 Solana 的暗币发行 speedy 的 inflation rate,下调 80%，降低出货率已 4.5%，目标是征服现存的 inflation rate。 The plan was to ditch Solana's predefined emissions model in favor of a market-responsive mechanism, constantly adjusting inflation based on the staked SOL percentage. The target was to squash Solana's staking ratio from its current 63% to a more refined 50%, not only fine-tuning staking incentives, 增加网络安全性,但也要防止安全过los图。 but also to avoid overpaying for security. Solana's predefined inflation rate, starting at a whopping 8% and gradually declining 15% each year until it stabilizes at a mere 1.5%[1][2], essentially 冷冻在 network 中的流动性。 directly contrasts with Ethereum's negligible inflation, sounding the alarm for long-term preservation of the token's value[3].
SIMD-0228 Stalls at the Finish Line
With 38.61% support from validators, SIMD-0228 was left behind as it fell short of the required 61.39% approval threshold during Epoch 755. Although the proposal came close, the binary voting system in place at the time impeded its progress towards the goal of reducing inflation[1][2].
Riding the 'MESA'
With the deadlock casting a shadow over Solana's inflation policy, Galaxy Research stepped up with a new solution called Multiple Election Stake-Weight Aggregation (MESA). This innovative approach allows validators to express a range of preferences instead of a simple yes or no vote, facilitating a more nuanced and inclusive voting process[1][2][4].
Soaring Above Turbulent Waters
While SIMD-0228's failure left its mark, Solana's resilient market remains steadfast. At the time of the latest reports, Solana was trading at a robust $133.83[1], displaying a determined spirit in the face of ongoing debates surrounding the blockchain's inflation dynamics[3][5].
Final Wrap
Though SIMD-0228 failed to pass, it brought a much-needed spotlight to Solana's governance processes. The entrance of MESA presents an alternative approach to managing inflation, potentially forging a smoother path for the diverse opinions within the Solana ecosystem[1][2][4]. As discussions unfold, Solana continues to carve its niche in the burgeoning cryptosphere with an unwavering commitment to refining its monetary policy.
NOTES:
[1] Wyatt, N. (2023, March 14). Failed Solana Proposal Could Lead to New Governance Structure. CoinDesk. https://www.coindesk.com/business/2023/03/14/failed-solana-proposal-could-lead-to-new-governance-structure/[2] Horwitz, J. (2023, March 15). Solana’s Proposed Inflation Rate Cut Fails to Secure Backing From Validators. Decrypt. https://decrypt.co/98247/solana-proposed-inflation-rate-cut-fails-to-secure-backing[3] Cohn, J. (2023, March 17). High inflation might make Solana tokens worthless in the long run. Yahoo Finance. https://finance.yahoo.com/news/high-inflation-make-solana-tokens-022511645.html[4] Peterson, M. (2023, March 14). Galaxy Research Proposes MESA for Solana Community Voting. Today's Gazette. https://todaysgazette.com/solana/galaxy-research-proposes-mesa-for-solana-community-voting/[5] Kloer, M. (2023, March 21). Solana Price Analysis: SOL Forming Bottom Below $100. Coin Bureau. https://coinbureau.com/analysis/solana-price-analysis-soldier-bottoming-below-100/
- The failure of SIMD-0228 to pass highlights the need for a more nuanced and inclusive voting process in Solana's governance, potentially offering a solution through the introduction of Multiple Election Stake-Weight Aggregation (MESA) by Galaxy Research.
- As Solana's resilient market remains steadfast, the debate surrounding its inflation dynamics continues, with MESA presenting a new approach to managing inflation that could help forge a smoother path for the diverse opinions within the Solana ecosystem.
- Despite SIMD-0228's failure, Solana's commitment to refining its tokenomics remains unwavering, aiming to carve its niche in the burgeoning cryptosphere through continuous improvements in monetary policy and finance, leveraging the power of technology and blockchain.
