- SIMD-0228 proposes shifting Solana’s token emissions from a fixed schedule to a dynamic, market-based model.
- Supporters argue it will reduce inflation and boost DeFi, while critics warn it could hurt staking and decentralization.
- Voting begins during Solana Epoch 753, with a tight outcome expected as opposition rallies against the proposal.
A new Solana proposal, known as SIMD-0228, is stirring up major debate in the community as it pushes to change how new tokens are generated on the blockchain. The proposal suggests shifting from a fixed-rate token emission model to a market-based emission schedule that adjusts based on staking participation.
Instead of following a preset inflation schedule, the proposal would allow Solana’s inflation rate to change dynamically based on network activity.
The Argument for “Smart Emissions”
The proposal, authored by Multicoin Capital’s Tushar Jain and Vishal Kankani, along with Max Resnick from Anza, aims to introduce “smart emissions” that would adapt to network conditions. They argue this could:
- Reduce overall inflation
- Increase DeFi adoption
- Lower selling pressure on SOL
- Strengthen Solana’s long-term monetary policy
Solana co-founder Anatoly Yakovenko has backed the proposal, pointing out that the current model leads to unnecessary inflation costs—estimated at $1-2 billion per year.
Industry Voices Weigh In
The proposal has received strong endorsements from key figures in the Solana ecosystem.
Helius Labs CEO Mert Mumtaz argued that SIMD-0228 accelerates Solana’s transition to a network based on real economic value. Placeholder VC partner Chris Burniske agreed, saying inflation should serve as a temporary mechanism to bootstrap the network, but real yield should ultimately come from demand-driven activity.
“I’m in favor of SIMD-228,” Burniske posted on X. “Real yield comes from what the demand-side leaks to the supply-side, and inflation is just a bootstrapping mechanism.”
The Opposition: Decentralization Concerns
Not everyone in the Solana community is convinced. Some argue that reducing inflation too aggressively could hurt staking participation, potentially threatening network security and decentralization.
SolBlaze.org, a major Solana validator, warned that the proposal could drastically reduce the number of SOL tokens being staked, which could ripple across Solana’s DeFi ecosystem.
“DeFi is what powers Solana adoption,” a SolBlaze representative told Decrypt. “If staking rewards drop significantly, it could weaken security and slow adoption.”
Solana Foundation President Lily Liu has also expressed skepticism, calling SIMD-0228 “half-baked” and arguing that fixed-rate emissions provide valuable predictability in financial markets. She suggested modifying the proposal rather than rushing a vote.
The Upcoming Vote
Voting on SIMD-0228 is set to begin during Solana Epoch 753, expected to start Friday at 8:30 PM ET according to Solscan. The proposal needs two-thirds approval to pass, and SolBlaze predicts a tight vote.
“There’s still a chance to stop the proposal,” SolBlaze told Decrypt, as they work to rally last-minute opposition.
The outcome of this vote could shape Solana’s long-term economic model and determine whether the network sticks to its traditional emission model—or moves toward an adaptive, market-driven approach.
