Solana
Solana validators vote to keep full control of priority fees
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Solana validators voted on SIMD-0096, a proposal to self-award 100% of priority fees, ending the previous 50/50 split between hot fees and validator rewards. Proposal was passed with 77% approval.
According to descriptions of the proposal, it was designed to address specific flaws in Solana’s current validation system while maintaining alignment with network security incentives.
Although voting for this specific proposal has been completed, implementing its mechanics may take several months given that the Solana mainnet does not yet support it. This delay would allow for further discussion and development of ancillary proposals: SIMD-0123, to streamline the distribution of block rewards; and SIMD-0109, providing a native failover mechanism.
The proposal’s changes would effectively reduce potential side deals that could arise between block producers and transaction bidders, a facet of the validation system that poses network security risks. Support for SIMD-0096 has come from validators such as Jito, Helius, Stakehaus, Bonk, Leapfrog, Solend, Everstake, and Pico.sol. Validators who were not in favor of the proposal included GREED, Step Finance Solana Compass, Shinobu, Triton, AG, Pumpkin Pull, Edgevana and Orangefin.
Opposing validators have raised concerns about the proposal’s potential impact on the long-term price of SOL and the stability of the Solana ecosystem.
Critics such as Hanko Baggins and Bandito Stake argue that removing the burn mechanism would leave Solana’s annual inflation rate open, thereby removing long-term SOL pricing. Solana co-founder Anatoly Yakovenko responded to these criticisms by calling priority consumption fees a “bug” in the system that needed to be fixed. In effect, the current system forces users to pay priority fees twice just to outbid on tips. These are not burned, and are entirely transferred to the validators.
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