Solana (SOL) Just Made Two Big Decisions About Its Future – Here's What They Mean for Holders

A proposal to slash Solana's inflation rate (SIMD-228) failed, while a plan to share revenue with validators (SIMD-123) passed.

Solana’s community has made two big decisions that will impact the future of the network and have implications for SOL. A proposal to slash Solana’s inflation was ultimately rejected, while a plan to share revenue with validators passed.

The vote, which saw 74.3% of Solana’s total stake participate in making these choices, marks the highest engagement in Solana’s governance history—surpassing even U.S. presidential elections turnout in the past 100 years, as noted by Solana on X.

Inflation Cut Fails To Reach Needed Threshold

The proposal, SIMD-228, aimed to ditch Solana’s fixed inflation schedule for a market-driven system that adjusts token issuance based on staking participation.

At the current staking participation levels of 65%, this would lower the annual inflation rate to below 1%. In comparison, the existing fixed schedule starts at 4.6% annually and decreases to 1.5% over time.

Proponents of reducing inflation argued that it would make SOL scarcer and more valuable in the long term, benefiting long-term token holders. However, opponents expressed concern that it could negatively impact smaller stakers and validators who rely on staking rewards to maintain profitability.

The voting began on March 6 during Solana Epoch 753 and concluded at the end of Epoch 755. It required a 66.67% approval to pass but fell short, achieving only 61.4% YES votes.

“So issuance will stay the way it is,” said Mert Mumtaz, CEO of Solana developer platform Helius Labs.

Tushar Jain, a Multicoin Capital co-founder and co-author of the proposal, described it as a milestone in crypto governance due to the participant count and market cap involved.

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