Solana Governance Proposal SIMD 0228 Failed: Community Participation Reaches New Highs

Recently, the Solana ecosystem underwent an important governance vote. Although the SIMD 0228 proposal did not pass, it sparked widespread discussion, and the voter participation rate reached a historical high, close to 50% of the total token supply.

The background of this proposal is that trading activity on the Solana chain has gradually returned to calm from the frenzy at the beginning of the year. Weekly trading volume has decreased from nearly 100 billion dollars during peak periods to less than 10 billion dollars, a decline of 90%, even falling below earlier levels.

At this critical moment, Solana's main supporters have put forward the 0228 proposal, aiming to dynamically adjust the inflation rate based on the staking rate, with the goal of maintaining a 50% staking rate and reducing the issuance rate of SOL over the long term. The proposal immediately sparked intense debate within the community.

Supporters believe that the current fixed inflation model is a "mindless issuance" that does not take into account the actual demand of the network. They advocate for reducing unnecessary token issuance, lowering inflation costs, releasing capital to promote the development of the DeFi ecosystem, and minimizing the "leaky bucket effect."

Opponents are concerned that the proposal might be rushed into implementation, potentially harming small validation nodes and affecting the level of decentralization in the network. They believe that more thorough discussion and demonstration are needed.

Although the proposal was not passed, the entire process demonstrated the high level of engagement and governance transparency within the Solana community. Various parties publicly debated on social media and even organized online discussions to ensure everyone could understand the different viewpoints.

Although the outcome of this governance practice did not meet the expectations of some, it highlighted the dilemma of interest distribution faced by the Solana ecosystem as it enters a new phase. It also provides valuable governance experience for other blockchain projects, demonstrating the importance of rapid decision-making and open discussion.

In the future, the Solana community may need to find a balance between promoting innovation and maintaining stability, ensuring that the interests of all parties are fully considered while maintaining an efficient decision-making mechanism. This governance practice has undoubtedly accumulated important experience for the long-term development of Solana.