Solana major proposal SIMD-228 did not pass, SOL token issuance mechanism remains unchanged

Solana's recent high-profile governance proposal, SIMD-228, failed to pass the validator vote, meaning that the fixed inflation mechanism for SOL tokens will remain unchanged. The vote attracted a record 74% turnout, but ultimately failed to get the required number of support votes.

Proposal SIMD-228: Dynamic inflation has failed to replace the fixed issuance model

SIMD-228 proposes a major overhaul of the Solana token economy, with plans to replace the current fixed inflation schedule with a market-driven dynamic issuance model. According to the proposal, the new issuance model will adjust the SOL supply based on staking participation.

The current fixed inflation rate of SOL tokens is 4.6%/year and will decline at a rate of 15% per year, eventually stabilizing at 1.5%/year. The dynamic mechanism proposed by SIMD-228 could reduce SOL inflation to less than 1% (based on the current pledge ratio of approximately 65%).

Proponents argue that reducing SOL inflation makes tokens more scarce and beneficial to long-term holders. However, opponents worry that the move could affect the earnings of smaller validators and stakers, and thus the degree of decentralization of the network.

Voting result: SIMD-228 does not meet the threshold, maintain the current mechanism

SIMD-228 voting began on March 6 (Solana Epoch 753) and ended with Epoch 755. The proposal required more than 66.67% of the "yes vote" to pass, but in the end it only received 43.6% "yes" and 27.4% "against", that is, the total support rate reached only 61.4%, which failed to meet the threshold.

Helius Labs, CEO of Solana development platform, said: "The SOL token issuance mechanism will maintain the status quo."

Tushar Jain, co-founder of Multicoin Capital, said: "SIMD-228 is the most attended and market capitalization influential crypto governance poll ever, which proves that the Solana network is thriving and fully decentralized."

Another proposal, SIMD-123, was passed, which will increase transparency of earnings

Although SIMD-228 failed, another proposal, SIMD-123, passed smoothly at the end of Epoch 755, receiving nearly 75% of the "yes votes." The proposal agrees that validators will share part of the revenue with stakers to improve revenue transparency and replace the off-chain reward mechanism currently used by some validators.

Solana Labs co-founder Anatoly Yakovenko said on X: "SIMD-228 didn't pass, but SIMD-123 was supported. This shows that those who oppose 228 are not just motivated by self-interest."

The results of this vote show that the Solana community is still divided on the adjustment of the economic model. While SIMD-228 was supported by some long-term holders, it ultimately failed to gain sufficient validator recognition. On the other hand, the support for transparency of benefits through SIMD-123 on behalf of the community may lead to the promotion of more proposals in the future.

The article Solana Major Proposal SIMD-228 failed to pass, and the SOL token issuance mechanism remained unchanged first appeared in Chain News ABMedia.