The vote on the inflation rate adjustment proposal SIMD-0228 in the Solana community has concluded: 43.6% support, 27.4% opposed, failing to reach the 66.67% approval threshold. The inflation rate model will remain unchanged from a gradual decrease from 8% to 1.5% annually. Some are worried this will drag down $SOL 's market, but I want to say this is just a minor episode. SOL will definitely surpass $ETH for the following reasons.
1️⃣ Inflation pressure is but a temporary pain.
SIMD-0228 proposal to cut the inflation rate to 1% or lower, reducing about 80% of coin issuance, but not passing means the current 4.7% inflation rate will continue for some time. Hundreds of millions of SOL are added annually. In the short term, this does bring selling pressure, however, after the vote, SOL not only did not fall but rose. The market has digested this result.
In contrast, ETH's deflation rate after the merge is only -0.2%, and the scarcity advantage is overestimated. Solana's inflation is just a cost of growth. As the ecosystem explodes, demand will easily outstrip supply. The future of SOL is not in inflation, but in value.
2️⃣ Governance miracle: Solana's community is invincible
In this vote, 74% of staked SOL, about 910 validators, participated. In contrast, ETH's governance relies on core developers and large holders, and the community voice is often diluted. Solana's decentralized vitality is not only a technical victory but also a gathering of faith.
This community power will drive Solana to continuously evolve, attracting more developers + users and funds. ETH's position is being shaken.
3️⃣ Technological crushing: Solana is the future king.
Solana's trump card is high throughput, with tens of thousands of transactions per second and fees as low as a few cents. By early 2025, its DeFi TVL has exceeded $5 billion, and the NFT and Memecoin ecosystems are booming, with user activity far surpassing ETH mainnet. Ethereum relies on Layer 2 to fill gaps, but high costs and complexity have caused some users to turn to Solana.
Technology determines the future. Solana's performance advantage will devour ETH's market share, and SOL's demand is destined to surge.
4️⃣ Small validators cannot stop the big trend
SIMD-0228 not passed. One reason is that small validators are concerned that inflation reduction threatens their earnings, but this is just a temporary disagreement. Solana's core team and community have the ability to launch better solutions in the future, balancing decentralization and economic models. In contrast, ETH's bureaucratic upgrades, like EIP-1559, take years and are inefficient. Solana's flexibility is key to surpassing.
5️⃣ SOL surpasses ETH time issues rather than possibilities
Current SOL market cap $6 billion, only 1/4 of ETH, but the gap is narrowing. Imagine:
Ecosystem explosion: A meme craze or a new wave of DeFi, SOL easily doubles, market cap breaks $10 billion.
Technological iteration: Faster transaction finality makes Solana the preferred choice. SOL surges to $500, market cap $20 billion.
Institutional entry: If Solana ETF is approved, a flood of funds will push SOL's market cap close to ETH.
ETH's growth has approached its ceiling. Solana is at the starting point of exponential expansion. Surpassing is not if, but when. I predict that in the next $BTC Bitcoin halving, SOL's market cap will surpass ETH to become the king of public chains.
SOL is the future
The failure of SIMD-0228 is just a small ripple and cannot stop the huge wave of Solana. SOL will not only approach ETH but will surpass it.