Solana is preparing for two important updates to increase the long -term sustainability of the network. The so -called SIMDS 0123 and SIMDS 0228 aims to regulate inflation management through award distribution. These changes are expected to have great effects on verifiers and investors.
New mechanism is coming in award distribution
The Solana team plans to distribute the priority fees of the verifiers among the staks. In the current system, verifiers receive additional payment for transaction priority. In the new model, these fees will be transferred to those who do directly.
This change aims to attract more investors to the ecosystem by increasing the Stake awards. It will also prevent verifiers from making more profit by making transaction agreements. However, some experts say that there may be serious decreases in the income of small verifiers.
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According to Matthew Sigel, Head of Vaneck Digital Asset Research, the earnings of the verifiers may decrease by 95 %. Sigel says that small -scale verifiers may have difficulty in financial sustainability.
Inflation rate will be connected to the stake ratio
Solana’s second update envisions to adjust the inflation rate of the Left Token to the staked supply ratio. Thus, token dilution will decrease and users tend to sell prizes instantly.
According to current data, Solana’s inflation rate fell from the initial 8 %to 4 %. The targeted level is determined as 1.5 %in the long term. The planned mechanism aims to maintain the balance of the market by adjusting the inflation rate in an inversely proportionate part of the supply.
This change may adversely affect the earnings of the verifiers. The directing of awards to those who stake can make it difficult for small verifiers to compete in the network. For this reason, the update is met with different views within the community.
The Solana network will enter the voting process for the implementation of these regulations. The decision will be shaped in line with the views of the stakeholders by preserving the decentralized structure of the network. As a result, these developments can redefine the economic structure of the solana ecosystem.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
