news 
Solana Proposal to Reduce Inflation by 80% Fails to Pass
A proposal aimed at reducing inflation in the Solana ecosystem has been rejected. The SIMD-228 proposal sought to adjust the blockchain’s inflation system based on staking participation, with an estimated potential reduction of 80%. Despite garnering significant support from 43.6% of participating voters, the proposal ultimately failed to pass, falling short by just over 5 percentage points.
The proposed model would have replaced Solana’s current fixed inflation schedule with a dynamic one that adjusts based on staking levels. This change was intended to encourage greater participation in the network and stabilize it. However, critics argued that the new system would add complexity and potentially create instability for smaller validators.
Solana’s price remained relatively unaffected by the proposal’s rejection, dipping 1.5% and trading just below $125 at the time of writing. This stability is somewhat surprising given the potential impact on the token’s supply dynamics. However, Solana has been struggling with a significant decline in network revenue since the memecoin trading boom faded.
The high voter turnout, with over 74% of Solana’s staked supply participating in the vote, may have been seen as a positive sign by some within the community. While the proposal did not pass, it is notable that such a large percentage of validators engaged in this critical governance decision.
