Solana gains 9% after garnering historic number of on-chain votes in failed SIMD-228 proposal

Source Fxstreet
  • Solana reclaimed the $130 price level after 74% of staked SOL was used in participating in its recent on-chain vote.
  • The rise in Solana's price follows the rejection of the SIMD-228 proposal.
  • The proposal aims to switch SOL's issuance from a fixed inflation rate to a dynamic model by altering staking rewards.

Solana (SOL) is up 9% on Friday following the result of the recent Solana Improvement Document (SIMD) 0228 governance vote, which failed to meet the required 66.67% approval threshold of participatory votes .

Solana validators vote against SIMD-228, SOL sees slight recovery

SIMD-228 failed to receive the required support needed for implementation, as 66.67% of yes votes were necessary for it to pass. The voting ended with 27.6% of validators voting no, while 43.6% voted yes, per Dune analytics dashboard by kagren0.

74% of Solana's staked supply was used in voting among 910 validators, marking the network's highest governance vote ever.

SIMD-228 voting status

SIMD-228 voting status. Source: Dune dashboard by kagren0

"To put that in context, SIMD-228 was the biggest crypto governance vote ever — by both number of participants and participating market cap of any ecosystem, chain, or network," said Tushar Jain, cofounder of Multicoin Capital.

Most of the voters included large and small validators and stakers from diverse sections of the Solana ecosystem. Notably, validators with greater stakes supported the proposal, while those with 500,000 SOL and less voted against it.

SIMD-228, introduced by Multicoin Capital, is a governance proposal that aims to alter Solana's inflation rate from a fixed schedule to a more dynamic, market-based emission mechanism. Solana's current inflation rate is around 4.7% annually, with a fixed schedule that decreases by 15% until it reaches a terminal rate of 1.5%.

SIMD-228 proposes a switch from the annual 4.7% inflation to an emission rate that adjusts based on how much SOL is staked.

The proposal was met with heated debates across the Solana ecosystem. Supporters argued that a dynamic model will reduce inflation, stabilize SOL's price, and incentivize its usage across decentralized finance (DeFi) protocols.

In contrast, opposers argued that reducing staking rewards could harm decentralization by forcing smaller validators offline. They also pointed out that reducing inflation for a network as recognized as Solana could harm its growth in the long run.

SOL is trading near $134 at the time of writing, up 9% in the past 24 hours.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ripple (XRP) Price Sees a Surge, Solana Targets $600 in 2025 as Investors Increase Focus on New AltcoinThe cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
Author  Cryptopolitan
Jan 15, Wed
The cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Related Instrument
goTop
quote