Solana
Solana validators take all priority fees.
Wed May 29, 2024 ▪ 3 min reading ▪ by Luc Jose A.
Solana, one of the most promising blockchains in the crypto industry, has just experienced a watershed moment. Validators approved a key proposal on priority transaction fees, radically changing the distribution of these fees. This decision, while widely supported, also sparked significant controversy within the community.
Approval of SIMD-0096 proposal by Solana Validators
Solana Validators recently voted on proposal SIMD-0096. 77.77% of voters supported this proposal. This crucial change implies that 100% of priority fees will now go directly to validators, compared to only 50% previously.
Among the validators who have supported this proposal are influential entities such as Helius, Jito, Everstake, Solend and Stakehaus, who believe that this modification will improve the security and efficiency of the network by increasing financial incentives for validators. According to them, this redistribution of fees will motivate validators to maintain the robustness and performance of the Solana blockchain.
The SIMD-0096 proposal also aims to correct the dysfunctions of the previous model which, according to its supporters, encouraged side agreements detrimental to the integrity of the network. Tao Stones, the creator of the proposal, explained that the previous model allowed for informal agreements that could compromise the security of the Solana network. By directing all priority fees to validators, the proposal aims to ensure a more transparent and equitable distribution of incentives while reducing the risks of questionable practices among participants.
A proposal approved, but contested by certain validators
Despite majority approval of the SIMD-0096 proposal, several Solana validators have expressed notable reservations. Among the opponents, Orangefin Ventures stood out by voting against the proposal. According to this validator, SIMD-0096 should have been accompanied by the SIMD-0123 proposal, which facilitates a more automatic and equitable distribution of fees between stakeholders.
Orangefin Ventures justified its vote by stating: “The reason we voted no is that we want SIMD-0096 to be accompanied by SIMD-0123 so that validators can distribute priority fees to stakeholders within the protocol. »
In addition to concerns about transparency and fairness, opponents fear that this new reallocation of fees could lead to increased inflation of the SOL crypto. Priority fees, which will no longer be burned, could potentially increase the total supply of SOL crypto, thereby causing a devaluation. Users like FreedomFighter have expressed their concerns, saying that “every user will suffer from higher inflation.”
These disagreements highlight the continuing challenges facing Solana Community faces. It must balance incentives for validators while ensuring the economic stability of the network.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
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The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.