Solana gains 9% after garnering historic number of on-chain votes in failed SIMD-228 proposal

Source Fxstreet
  • Solana reclaimed the $130 price level after 74% of staked SOL was used in participating in its recent on-chain vote.
  • The rise in Solana's price follows the rejection of the SIMD-228 proposal.
  • The proposal aims to switch SOL's issuance from a fixed inflation rate to a dynamic model by altering staking rewards.

Solana (SOL) is up 9% on Friday following the result of the recent Solana Improvement Document (SIMD) 0228 governance vote, which failed to meet the required 66.67% approval threshold of participatory votes .

Solana validators vote against SIMD-228, SOL sees slight recovery

SIMD-228 failed to receive the required support needed for implementation, as 66.67% of yes votes were necessary for it to pass. The voting ended with 27.6% of validators voting no, while 43.6% voted yes, per Dune analytics dashboard by kagren0.

74% of Solana's staked supply was used in voting among 910 validators, marking the network's highest governance vote ever.

SIMD-228 voting status

SIMD-228 voting status. Source: Dune dashboard by kagren0

"To put that in context, SIMD-228 was the biggest crypto governance vote ever — by both number of participants and participating market cap of any ecosystem, chain, or network," said Tushar Jain, cofounder of Multicoin Capital.

Most of the voters included large and small validators and stakers from diverse sections of the Solana ecosystem. Notably, validators with greater stakes supported the proposal, while those with 500,000 SOL and less voted against it.

SIMD-228, introduced by Multicoin Capital, is a governance proposal that aims to alter Solana's inflation rate from a fixed schedule to a more dynamic, market-based emission mechanism. Solana's current inflation rate is around 4.7% annually, with a fixed schedule that decreases by 15% until it reaches a terminal rate of 1.5%.

SIMD-228 proposes a switch from the annual 4.7% inflation to an emission rate that adjusts based on how much SOL is staked.

The proposal was met with heated debates across the Solana ecosystem. Supporters argued that a dynamic model will reduce inflation, stabilize SOL's price, and incentivize its usage across decentralized finance (DeFi) protocols.

In contrast, opposers argued that reducing staking rewards could harm decentralization by forcing smaller validators offline. They also pointed out that reducing inflation for a network as recognized as Solana could harm its growth in the long run.

SOL is trading near $134 at the time of writing, up 9% in the past 24 hours.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Will the Fed Rescue the Plunging U.S. Stocks? Can Powell Act—or Even Try—at the March Meeting?TradingKey – The early days of Trump’s return to the White House have failed to deliver the "Make America Great Again" (MAGA) rally investors hoped for, instead pushing the S&P 500 into correction ter
Author  TradingKey
12 hours ago
TradingKey – The early days of Trump’s return to the White House have failed to deliver the "Make America Great Again" (MAGA) rally investors hoped for, instead pushing the S&P 500 into correction ter
placeholder
[IN-DEPTH ANALYSIS] Trump Policies: Market Overreacted, Remain Bullish on StocksExecutive SummaryThere’s no doubt that Trump’s high tariffs and retaliatory measures from trade partners alone could dampen the upward momentum of U.S. and European stock markets. However, Trump’s pot
Author  TradingKey
12 hours ago
Executive SummaryThere’s no doubt that Trump’s high tariffs and retaliatory measures from trade partners alone could dampen the upward momentum of U.S. and European stock markets. However, Trump’s pot
placeholder
NZD/USD hits three-week high near 0.5775; seems poised to climb further on bearish USDThe NZD/USD pair gains positive traction for the second straight day on Monday and climbs to a three-week high, around the 0.5775 region during the first half of the European session.
Author  FXStreet
12 hours ago
The NZD/USD pair gains positive traction for the second straight day on Monday and climbs to a three-week high, around the 0.5775 region during the first half of the European session.
placeholder
EUR/USD wobbles as Fed’s policy takes center stageEUR/USD trades in a tight range below the key level of 1.0900 in European trading hours on Monday.
Author  FXStreet
13 hours ago
EUR/USD trades in a tight range below the key level of 1.0900 in European trading hours on Monday.
placeholder
This week, Fed’s Powell must talk up growth while keeping rate cuts on the tableJerome Powell is stepping into a tough spot this week. He has to assure investors that the economy is strong while making it clear that the Federal Reserve is ready to cut interest rates if things start going south. The timing is brutal. Stocks have been unstable, bond yields are down, and the White House […]
Author  NewsBTC
14 hours ago
Jerome Powell is stepping into a tough spot this week. He has to assure investors that the economy is strong while making it clear that the Federal Reserve is ready to cut interest rates if things start going south. The timing is brutal. Stocks have been unstable, bond yields are down, and the White House […]
Related Instrument
goTop
quote