A highly debated Solana Improvement Proposal (SIMD-0228) is set to be voted on, potentially reshaping the network’s staking rewards system. The proposal, which aims to introduce a market-based emissions model rather than a fixed-rate schedule, has sparked intense debate among builders, validators, and investors.
The vote is scheduled for Friday evening during Solana Epoch 753 at approximately 8:30 PM ET, according to Solscan.
What is SIMD-0228?
SIMD-0228, authored by Multicoin Capital’s Tushar Jain and Vishal Kankani, alongside Max Resnick of Solana R&D firm Anza, proposes shifting Solana’s inflation model from a fixed-rate emission system to a staking participation-based model. This means token issuance will adjust dynamically based on network activity rather than following a pre-set schedule.
Proponents argue that smart emissions will:
- Reduce Solana’s inflation and improve economic efficiency
- Boost DeFi adoption by incentivizing staking participation
- Lower sell pressure on SOL, potentially benefiting long-term holders
Solana Labs co-founder Anatoly Yakovenko and prominent figures like Helius Labs CEO Mert Mumtaz and Placeholder VC’s Chris Burniske have expressed strong support for SIMD-0228. Yakovenko stated that inflation currently costs the Solana network between $1-2 billion annually, arguing that a dynamic system would be more sustainable.
“The counterarguments to 228 are pretty bad because the cost of inflation is something on the order of $1-2 billion per year,” Yakovenko wrote on X (formerly Twitter).
Why Is There Pushback?
Despite strong backing from key industry figures, several validators and Solana stakeholders oppose the proposal. SolBlaze.org, a Solana validator, has actively campaigned against SIMD-0228, arguing that:
- Staked SOL could drastically decrease, threatening network security
- Decentralization could suffer, as small validators may be impacted
- DeFi protocols relying on staking rewards may see disruptions
Solana Foundation President Lily Liu also criticized the proposal, calling it “too, too half-baked”. She warned that adjusting the network’s monetary policy during a critical growth period could have unintended consequences for SOL’s price and ecosystem stability.
“No on the proposal before us,” Liu stated, suggesting an extension for further refinements instead.
Final Hours Before the Vote
With the vote requiring a two-thirds majority to pass, the outcome remains uncertain. SolBlaze expects a close contest, with both sides rallying for support until the last moment.
“There’s still a chance enough people can come together to stop the proposal,” SolBlaze told Decrypt.
As Solana’s network continues to grow, this decision could fundamentally alter how staking rewards work, impacting both long-term investors and developers building on the blockchain.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research before making any financial decisions.
