Van Ek, a company of assets administration, said solana’s protocol upgrades are important for the long -term health of the network, but they can damage the authenticator’s income.
In March, the so -called blockchain protocol will vote for two suggestions: the so -called “Solana Improvement Documents (Simids).” The purpose of these proposals is to ensure the distribution of stacking prizes and adjust the network’s ancestral token civil inflation rate.
Matthew Siegel, head of a digital assets research in Van Ek, pointed out in the X (formerly Twitter) post on March 4 that the proposals were causing a “major controversy”. The reason for this is that the revenue of legitimate cars can be reduced by up to 95 %, which is potentially at risk of survival of small operators.
“Although these changes may reduce the rewards of hell, we believe that reducing inflation is an important goal to strengthen Solana’s long -term stability,” said Siegel.
From 2023, civilian stack supply has increased. Source: Coin matrix
Distribution of Rewards to Stickers
Siegel explained that the first proposal, SIM D -0123, “introduces a protocol mechanism to distribute stickers verifying Sulana’s preferred fees.” Traders can pay additional fees to the authenticity to accelerate the processing of the transaction.
Siegel said the preferential fee is 40 % of the network’s income, but currently the verifies are not obliged to share the fee with the stickers. On the other hand, the ratiosis need to return other taxes, such as voting fees, stickers.
Siegel said the proposal will be voted on March 6, and not only will the stacking prizes be increased, but it aims to “control the off -chain of trading agreements between traders and verifies and strengthen the implementation of China.”
Solana’s stacking system involves locking a civilized person as a suicide bomber. Stickers can get the SOL as a network fees and other rewards, but there is also a risk that if they commit fraud, the authentors will lose the SOL due to “throwing”.
Taxes from Solana network fees and indicators. Source: Multi Quin Capital
Adjustment of inflation
The second proposal, SIM D0228, “is the most effective of the suggestions,” Siegel Note.
The proposal will adjust to the inflation rates to be upset, so that the proportion of the token supply proportion is related to the proportion of the token.
According to a report shared by Coinmetrics via Quintel Graph, Solana’s inflation rate was 4 % by February 2024. It is below the original 8 %, but still the last target of 1.5 % is above the inflation target. Currently, inflation is decreasing at a fixed rate of 15 % every year.
According to China Kaccher’s report, the proposal was primarily prepared by Multi Quin Capital’s Vishal Kankani. Multi Quinn has kept Jato’s “great interests”, and Jato Solana is the most famous stacking pool. According to the company’s March report, as of December 2023, more than 93 % of Solana’s Solana studies used JITO software to maximize block generation revenue.
As the proposal is moving forward, asset manager is asking regulators to allow civil exchange trade funds (ETF) to be entered into the US exchange. Some issuing US regulators are also demanding that the cryptocurrency stacking inside ETF allow ETF’s return.
According to Bloomberg Intelligence, the possibility of approval of SOL ETF in 2025 is estimated to be about 70 %.
Magazine: Crypto has 4 years to be so big ‘no one can turn it off’: Ken Warwick, Infinix
