Planned updates of the Solana protocol are critical for the long -term health of the network, but according to the Vaneck asset manager, he may have a blow to the earnings of the validators.
In March, the Solanów Walidators will vote on the two proposed updates – known as Improvement Solana (Simds) documents – to the blockchain protocol designed to provide prizes for stakeers and adjust the inflation rate of native SOL (SOL) network inflation.
Both proposals generated “significant controversy” because they have a reduction in validators’ revenues by up to 95%, potentially authorizing smaller operators, the head of research on the assets of Vaneck Matthew Sigel he said In the post of March 4, X.
“Although these changes can reduce articular prizes, we believe that lowering inflation is a worthy goal that strengthens the long -term sustainable salt development,” said Sigel.
Sol’s STAKED SUPPLY has increased since 2023. Source: Coin records
Related: Jito Staking Solany pool exceeds $ 100 million in monthly tips: Cairos Research
Satisfying stakers
The first, Simd 0123, “would introduce the In-Prochol mechanism to disseminate the Solana priority fees in the Stakes case,” said Sigel. Traders can additionally pay validations for faster transaction processing.
Sigel said that the priority fees constitute 40% of the revenues from the network, but the Walidators are currently not obliged to provide fees to Stakers. Walidacists are obliged to transfer other forms of income, such as voting awards.
The proposal, which is ready to vote on March 6, not only increases the rewards, but “also discourages trade agreements between traders and validations, strengthening the execution in the chain,” said Sigel.
Staking includes blocking SOL as a security with Walidator in the Solana blockchain network. Stakers earns on payments from network fees and other awards, but they risk “cutting” – or loss of SOL security – if the validator behaves badly.
Revenues from the Solana network from fees and tips. Source: Multi -person capital
Adaptation of inflation
Second, Simd 0228, is “the most influential proposition”, according to Sigel.
This would adapt the Sola inflation rate to follow the percentage of tokens supply, potentially “reducing dilution and reduction of sales pressure from Stakers who treat revenue awards,” he said.
Since February, the Solana inflation rate is 4%, compared to the initial 8%rate, but still much above the terminative inflation of 1.5%, According to to the Coin Metrycs report made available by Cointelegraph. Inflation currently has a fixed rate of 15% per year.
The second proposal was developed primarily by Vishal Kankani from Multicoin Capital, According to to chaincatcher. Multicoin, Venture Capital, is the owner of a “significant position” in Jito, the most popular Solan pool, IT he said in the March report.
According to Jito Labs programmers, 93% of Solana validators employ Jito software to maximize the earnings of block building.
Proposals appear when assets calling the assembly authorities to permission for funds (ETFS) for exchanges in the USA. Issues also ask American regulatory bodies to enable cryptocurrencies in ETFS to enhance returns.
Bloomberg intelligence sets Chances of approval of ETF SOL in 2025 at about 70%.
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