SIMD 0228 Proposal Failed: A Major Victory for Solana Governance?

Recently, a highly anticipated governance vote within the Solana ecosystem has sparked widespread discussion. Although the SIMD 0228 proposal did not pass, the intense debate and high participation it generated are seen as a significant victory for Solana's decentralized governance.

Proposal Background

After experiencing a trading frenzy brought on by memecoins, on-chain activity in Solana has gradually returned to calm. The weekly trading volume has decreased from nearly $100 billion at the beginning of the year to less than $10 billion, a drop of 90%. It is during this critical period when Solana seeks transformation that its main capital supporters have proposed the SIMD 0228 proposal.

Proposal Content

The SIMD 0228 proposal aims to maintain a 50% staking rate by dynamically adjusting the inflation rate and to reduce the issuance speed of SOL in the long term. If approved, the short-term yield for staking SOL will decrease, while in the long term, the issuance will be reduced, and the staking yield will be adjusted in real-time according to the staking rate.

Voices of Support and Opposition

Supporters believe that the proposal can:

1. Reduce unnecessary token issuance and lower inflation costs.
2. Release capital to promote the development of the DeFi ecosystem
3. Reduce the "leaky bucket effect" and enhance the autonomy of the ecosystem.

Opponents are concerned:

1. A rushed implementation may affect the interests of different participants.
2. It may lead to the loss of small validators and damage the level of decentralization.
3. Possible Negative Impact on Institutions

Proposal Timing

The timing of the proposal is quite significant:

1. Solana still maintains a high trading volume, and node income is stable.
2. Restaking is about to be launched, which may bring additional profits to nodes.
3. Learn from the experiences and lessons of similar proposals in Ethereum.

Highlights of the Governance Process

Although the proposal was not approved, its governance process showcased several highlights:

1. Open and transparent discussion
2. High community engagement
3. Clear voting mechanism and decision-making process
4. Efficient Proposal Cycle

Conclusion

The SIMD 0228 proposal was not passed, but it reflects the strategic choices faced by Solana after its period of prosperity. This governance process demonstrates the execution capability and openness of the Solana ecosystem, setting a benchmark for blockchain governance. Although the discussion time for the proposal was short, the heated discussions and high participation it sparked make it a governance case worth learning from in the industry.