Solana’s high staking rewards remain unchanged following an unsuccessful reform proposal aimed at adjusting its inflation structure. The effort to pass SIMD-0228, designed to reduce the blockchain network’s annual staking rewards from 4.7% to 1% or less, did not receive the required majority.

The outcome is seen as a setback for influential figures within Solana who supported the proposal, which was intended to address the effects of high staking rewards on SOL’s price. In a tight contest, larger validators typically backed the change, while smaller participants expressed concerns about the potential impact on their revenues.

Despite the passionate debates and public discussions leading up to the vote, the proposal ultimately failed to achieve enough support. The division between validators highlights the differing interests among small and large stakeholders in the network. This was the first major economic reform proposal in Solana’s history that was rejected, demonstrating the challenges in balancing inflation control with community interests.

Small Validators’ Concerns

Jonny, a validator operator, pointed out that significant votes are rare and often occur only during crucial economic decisions. The SIMD-0228 vote had the highest participation in Solana’s history, with over 66% of validators casting their ballots.

On the other hand, Max Resnick emphasized that dialogue and compromise with those who opposed the proposal would continue, aiming to find a middle ground on Solana’s inflation policy. Such discussions are crucial for any future attempts to reform the network’s economic model.