Validators of Solana are set to vote on the SIMD-228 proposal, which suggests a shift to a new inflation model for SOL tokens. This was announced by Vishal Kankani, a co-author of the document.
SIMD-0228:
As we head to the vote in epoch 753, I am proud to share that we have spent almost two months discussing SIMD-0228 in public. (Check screenshot for details).
Throughout the process, we incorporated several pieces of community feedback:
1. Transitioned from a… pic.twitter.com/0g138cFGY8
— Vishal Kankani (@kankanivishal) March 6, 2025
Currently, the network’s annual inflation stands at 4.6% and is gradually decreasing by 15% annually until it reaches 1.5%, according to Solana Compass.
SIMD-228 proposes a dynamic model: if the percentage of tokens staked falls below the 33% threshold, SOL issuance will increase to incentivize participants. With a high volume of locked tokens, inflation will decrease, reflecting a reduced need to “overpay” for network security.
The document’s authors are Vishal Kankani and Tushar Jain from Multicoin Capital, along with economist Max Resnick from Anza. They believe this model will help reduce emission rates and make SOL a more scarce asset.
The vote on SIMD-228 is expected to commence around epoch 753. The proposal has sparked active debate within the community. Among its supporters are Solana co-founder Anatoly Yakovenko and Helius founder Mert Mumtaz.
President of the Solana Foundation, Lily Liu, expressed concerns, considering the model insufficiently thought out. She believes that unpredictable staking yields might deter institutional investors.
228 is too, too half-baked
Here’s my TLDR:
1/ Negative impact on SOL the asset during a critical period of growth
Blockchains are networks; they also have a native asset. The network and asset subecosystems are interdependent. Changing network parameters can be good for…
— Lily Liu (@calilyliu) March 6, 2025
Kankani and Resnick responded that the project had been publicly discussed for two months and refined based on feedback.
The opposition to 228 is claiming that there is some kind of rush to get this out. There isn’t, there wasn’t, it’s merely a tactic they are using to try and discredit the proposal. Tushar and Vishal introduced this SIMD almost 2 months ago. Along the way they accepted tons of… https://t.co/YMBiJiJD33
— Max Resnick (@MaxResnick1) March 6, 2025
Back in February 19, Blockworks researcher Carlos Gonzalez Campo reported that the annual inflation of SOL increased by 30.5% following the implementation of a new fee distribution model on the platform.