Solana
Why a Solana validator voted against increasing priority fees
Solana validators will receive additional fees after a proposal passed with 78% support Monday. The author and his supporters say this will ensure the integrity of the network, but one validator says it is an incomplete solution.
The SIMD-0096 proposal is a departure from the old model that burned half of the optional priority fees users could pay to speed up their transactions on Solana. From now on, 100% of these fees will be returned to validators.
“We voted no”, a spokesperson for the Solana validator Orangefin Ventures said Decrypt. “The reason we voted no is because we want SIMD-0096 to be accompanied by SIMD-0123 so that validators can distribute priority fees to stakeholders in the protocol.”
SIMD-0123 would allow validators to easily distribute fees collected on priority fees to those who delegated their staked SOL to them. Without passing SIMD-0123 in tandem with SIMD-0096, validators will need to manually reward stakers using methods such as airdrops, which will add more work than necessary, the spokesperson said.
But Tao Stones, the proposal’s creator, claimed the old model “does not fully align with validator incentives and inadvertently encourages side deals.”
According to CoinGecko, the price of Solana increased by 2% to $169.29 in the last 24 hours following the approval of the proposal. In the last 24 hours, users spent $1.9 million in Solana fees, according to Lama DeFi.
“This ensures that validators are properly incentivized to prioritize network security and efficiency, rather than being incentivized to engage in potentially harmful side deals,” Tao Stones explained in the proposal.
The vote ended with just over half of the shareholders participating, with 77.77% voting YES. The proposal has now been implemented.
Although the recently adopted proposal could result in increased security for the layer 1 blockchainsome have raised concerns that this will increase inflation as 50% of fees are no longer burned.
“This is not essentially stealing a deflation aspect that people bought Solana for, but every user will suffer from higher inflation,” Solana forum user FreedomFighter. said on the proposal. “[It] no matter how much you minimize the amounts, it remains a fact.”
However, those who voted for the proposal seem to believe that removing this burning feature will not have “a significant impact on inflation figures”, as the user put it. Denysk said. This is particularly the case as combustion mechanism will continue to exist for “normal” network charges, as SIMD-0096 only applies to priority charges.
Edited by Stacy Elliott.