The Solana community is currently engaged in discussions around the SIMD-228 proposal, a governance initiative that aims to transform the network's tokenomics.
The Solana community is currently engaged in discussions around the SIMD-228 proposal, a governance initiative that aims to transform the network's tokenomics by introducing a dynamic emissions model for SOL tokens.
Authored by Tushar Jain and Vishal Kankani of Multicoin Capital, the proposal seeks to replace the existing fixed inflation schedule of 4.6% annually, which decreases by 15% each year until stabilizing at 1.5%.
Under the new model, the issuance rate of new SOL tokens would adjust based on the staking rate. If the percentage of staked SOL falls below a targeted threshold of 33%, the inflation rate would increase to incentivize staking. Conversely, higher staking rates would lead to lower emissions, reflecting the network’s reduced need to “overpay” for security.
Proponents argue that this change could enhance the value of SOL by making it scarcer during periods of high staking.
Voting on the proposal is set to kick off in epoch 753, which is expected to begin this weekend. Key figures in the Solana ecosystem, including co-founder Anatoly Yakovenko and Helius founder Mert Mumtaz, have expressed support for the initiative.
Mumtaz stated that the proposal could strengthen the network while emphasizing the value of public discourse regardless of the outcome.
However, not all voices in the community are in favor. Lily Liu, president of the Solana Foundation, has expressed skepticism about the proposal, labeling it “too half-baked” and warning that its unpredictable staking yields could deter institutional investors.
The authors of SIMD-228 have defended their proposal, asserting that it has undergone extensive discussion and input since its inception in January.
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