- SIMD-228 failed to pass with 61.4% approval, leaving Solana’s token emissions policy unchanged despite record voter turnout.
- SIMD-123 passed with 75% support, allowing validators to share revenue with stakers, promoting transparency in Solana’s reward system.
Solana’s recent governance proposal, SIMD-228, failed to pass its validator vote, leaving the network’s token emissions policy unchanged. The proposal, which was intended to reduce inflation and implement a dynamic emission model based on staking participation, failed to secure the required 66.67% majority of “yes” votes.
The vote’s results were announced at the end of Solana Epoch 755, concluding a voting process that set a record for participation in the network’s governance.
SIMD-228 was designed to modify Solana’s current inflation model by replacing its fixed emissions schedule with a dynamic one. Under the proposed system, SOL token issuance would be adjusted based on the level of staking participation.
The goal was to bring the network’s inflation rate below 1% annually, assuming a 65% staking participation rate. The current model, in contrast, sets an inflation rate of 4.6% annually, with a reduction of 15% per year until it stabilizes at 1.5%.
Supporters of SIMD-228 believed that the proposal would make the SOL token more scarce and valuable over time, benefiting long-term holders. However, opponents expressed concerns that the model could reduce profitability for smaller stakers and validators.
Despite the debate, the proposal failed to pass, as only 43.6% of eligible voters cast “yes” votes, while 27.4% voted “no.” This resulted in 61.4% of the total votes being in favor, falling short of the 66.67% needed to approve the change.
Record Voter Participation
The voting for SIMD-228, which began on March 6 during Solana Epoch 753, received high participation. Around 74% of all staked SOL tokens were involved in the vote, considered one of the largest in the history of crypto governance.
This participation level exceeded voter presence in the 2024 U.S. presidential election, which was around 64%. Solana officials highlighted that this marked the largest governance vote in terms of both participant numbers and the ecosystem’s market cap.
Tushar Jain, co-author of SIMD-228 and co-founder of Multicoin Capital, stated that the vote signals the network’s growth and decentralization. Even though the proposal did not pass, he highlighted that the large voter turnout implies strong engagement in Solana’s governance process.
SIMD-228 was a historic milestone for crypto.
Even though our proposal was technically defeated by the vote, this was a major victory for the Solana ecosystem and its governance process. Over 74% of stake turned up to vote on the proposal. Yes votes were 43.6% of stake, no…
— Tushar Jain (@TusharJain_) March 14, 2025
While SIMD-228 failed, another proposal, SIMD-123, successfully passed with nearly 75% of “yes” votes. This proposal introduced a new mechanism allowing validators to share some of their revenue with stakers. The change aims to bring transparency to reward distribution by officially moving the process on-chain, as some validators currently use off-chain solutions to incentivize stakers.
Solana Labs co-founder Anatoly Yakovenko noted that SIMD-228’s failure did not indicate a lack of progress in the network’s governance. Despite both proposals aiming to reduce validator revenue, SIMD-123 passed with support, demonstrating the community’s commitment to enhancing transparency within the network.
Simd 228 didn’t pass, but 123 passed. Even though both proposals were for reducing validator revenue. Opposition to 228 isn’t just acting in their own self interest.
— toly 🇺🇸 (@aeyakovenko) March 14, 2025