$SOL Solana plans a major update aimed at changing its inflation and staking model. Currently, the inflation rate of Solana is 4.6% and decreases by 15% per year until it reaches 1.5%. The SIMD-0228 proposal suggests adopting a dynamic inflation rate, adjusted based on the percentage of SOL tokens being staked:
If less than 33% of the total supply of SOL is staked, inflation would increase.
If a large proportion of tokens is staked, inflation would decrease.
For example, with the current staking level of 65%, inflation would be below 1%. This change aims to strengthen the security of the network by encouraging more SOL holders to participate in staking.
However, this proposal has sparked debates within the community. Some believe it could favor large SOL holders, giving them increased influence over inflation and the token price. Lily Liu, chair of the Solana Foundation, has expressed reservations, calling the proposal "half-baked" and highlighting potential risks to the network.
The vote on this update is scheduled for epoch 753, which could begin this weekend. Discussions are ongoing, and the final decision will depend on the consensus within the Solana community.
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