Historic Vote on Solana: Proposal to Reduce Token Supply Hit 50% Block! - Coin Newsletter

The SIMD-228 proposal, which aims to reduce inflation on the Solana network, did not receive sufficient support in the broad vote.

The proposal, called Solana Improvement Document-228 (SIMD-2280192837374656574839201, which caused great repercussions on the Solana network, aimed to move away from the fixed inflation system to a dynamic system that automatically adjusts to the staking rate.

In the current model, the supply of SOL increases at a annual rate of 4.6%, while this rate decreases by 15% each year and stabilizes at 1.5% in the long term. The new proposal promised to bring inflation down to less than 1% while the staking rate on the network was 65%.

However, the 66.67% majority required for the proposal to be accepted was not achieved. 61.4% of respondents voted "yes" and 27.4% voted "no" in the voting that started on Solana Epoch 753** on March 6 and was completed at the end of Epoch 755.

Voter turnout reached 74%, surpassing even the turnout of all US presidential elections in the last 100 years. Tushar Jain, co-author of the proposal and co-founder of Multicoin Capital, highlighted how active and decentralized the network is, noting that the vote on the proposal was the largest governance vote in crypto history in terms of the number of participants and market capitalization.

Although the proposal was rejected, the proposal SIMD-123**, which would allow validators to officially split their revenue on-chain, passed with a strong 75% majority**. This innovation aims to make the distribution of rewards to stakers, which were previously incentivized by validators with off-chain solutions, transparent.

Solana Labs Co-Founder Anatoly Yakovenko, who made a statement on the subject, pointed out that although both proposals were actually aimed at reducing the revenues of validators, only one of them was accepted, thus concluding that **"those who oppose SIMD-228 are not acting solely out of personal interests"****.