- Solana’s proposal to reduce its 4.7% staking rewards inflation (SIMD-0228) has failed to secure the required supermajority, with small validators largely opposing the change.
- The vote revealed a significant divide between large and small validators, with over 60% of smaller validators (under 500,000 SOL) voting against the measure while 60% of larger validators supported it.
- The failed proposal marks the first economic reform to be rejected in Solana’s history, though proponents plan to pursue compromise solutions to address the network’s inflation concerns.
Solana’s ambitious inflation reform initiative has collapsed after failing to secure the required supermajority in a validator vote that concluded Thursday. The proposal, identified as SIMD-0228, would have dramatically reduced Solana’s annual staking rewards from 4.7% to potentially 1% or below, replacing the network’s fixed inflation mechanism with a dynamic, market-based system.
The week-long voting process revealed deep divisions within the Solana ecosystem, particularly between larger institutional players and smaller network participants. With 75% of the network’s voting power participating—the highest turnout in Solana’s history—the proposal ultimately fell short of the supermajority threshold needed for implementation.
Multicoin Capital and other influential Solana stakeholders who championed the reform argued that the network’s generous inflation rate negatively impacts SOL’s market performance by increasing selling pressure. Their proposal aimed to shift from the current static emissions schedule to an adaptable system that would adjust staking rewards based on network participation.
The voting data showed a clear split along stake size lines. According to a Dune dashboard, more than 60% of validators with 500,000 SOL or less voted against the measure, while the opposite pattern emerged among larger stakeholders, where 60% supported the change.
“Many people feel like SIMD-0228 is not the best proposal to address inflation on Solana,” explained SolBlaze, a validator operator. “SIMD-0228 is a significant economic change, and changes on this scale deserve more time to discuss, analyze data, and iterate with feedback from different sectors of the ecosystem.”
Opponents raised concerns that the proposal was rushed and potentially reckless. Some questioned whether Multicoin Capital‘s involvement represented a conflict of interest, while others warned the change would disrupt Solana’s DeFi ecosystem or reduce the network’s decentralization by forcing smaller validators offline.
The contentious reform effort sparked what Jonny, operator of the Solana Compass validator, described as a rare economic governance vote. According to records from StakingFacilities.com, this marked only the third such vote in Solana’s history and the first economic proposal to be rejected.
The voting drama intensified during the final days, with activity resembling election night politics—complete with betting markets, social media debates, and data analysis threads. According to Flipside Crypto, the turnout was remarkable, with 66% of validators participating in what is a voluntary process in Solana’s decentralized governance system.
Despite the setback, reform advocates aren’t abandoning their efforts. Max Resnick, one of the proposal’s co-authors and economic researcher at Anza Labs, indicated a willingness to work toward consensus: “We are gonna chat with the no’s and come to a compromise.”
For now, Solana’s existing inflation framework remains intact, continuing to offer validators some of the highest staking rewards among major blockchain networks. The failed vote underscores the challenges of implementing economic reforms in decentralized systems, particularly when those changes affect the financial incentives of diverse network participants.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Solana’s Inflation Reform Proposal Fails Vote But Marks Governance Milestone
- Utah Cryptocurrency Bill Passes Without State Investment Provision
- Bitcoin DeFi Growth Represents “Large Untapped Opportunity,” Binance Report Finds
- BlackRock’s Treasury-Backed BUIDL Token Surpasses $1 Billion in Assets
- CME Readies Solana Futures Launch, Paving Way for US Spot ETFs
