Multicoin Capital's proposal to change Solana's emissions mechanism has received positive feedback but is now facing criticism as a vote on the proposal approaches. Solana Foundation President Lily Liu has expressed concerns about the proposal, urging Solana to consider a more holistic approach to inflation and warning that unpredictable staking rewards could deter institutional investors. The proposal, known as SIMD-0228, aims to replace Solana's current emissions curve with a market-based mechanism tied to the percentage of Solana being staked. While the proposal has its supporters, there are also critics, with Liu highlighting the lack of data on the potential impact of SIMD-0228 and the potential negative effects of market-based staking rewards on larger capital allocators.
Content Editor ( blockworks.co )
- 2025-03-05
Solana Foundation president cautions SIMD-0228 could spook institutions
