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Solana’s SIMD-0228 Rejected but Strengthens Governance
Despite being rejected, the recent proposal, SIMD-0228, has strengthened Solana’s governance framework. The proposal aimed to reduce staking rewards in an attempt to address inflation issues and potentially boost SOL’s price.
The vote results reveal that nearly 58% of active validators supported the proposal, with 18.5% opposing it, and only 1.2% abstaining from voting. Although the proposal did not pass, the process itself has paved the way for a more robust and transparent decision-making procedure within Solana’s governance structure.
Critics of the proposal pointed out that reducing staking rewards would disproportionately affect smaller validators, potentially destabilizing the network and hindering its decentralization efforts. This criticism raises important questions about the impact on the network’s dynamics and whether such drastic measures are necessary to address inflation concerns.
On the other hand, proponents argued that the dynamic staking adjustments could strengthen network security by increasing inflation if staking participation decreased. Some also believed that this change would promote more active use of SOL in decentralized finance (DeFi) applications.
While the proposal has failed, it is essential to acknowledge its significance in furthering Solana’s governance framework.
Source: https://cryptotale.org/solanas-simd-0228-rejected-but-strengthens-governance/
