Solana upgrade may enhance the network, but validator income faces impact

Odaily reports that the Solana protocol upgrade will enhance the long-term stability of the network, but may significantly impact validator rewards. In March, Solana validators will vote on two proposals (SIMD 0123 and SIMD 0228), which could lead to a reduction of up to 95% in validator income. The SIMD 0123 proposal requires validators to allocate Solana's priority transaction fees to stakers, in order to increase staking rewards and reduce off-chain transaction protocols. The SIMD 0228 proposal adjusts the SOL inflation rate to be inversely proportional to the staking rate, in order to reduce token dilution and selling pressure. VanEck research head Matthew Sigel believes that while staking rewards may decline, reducing inflation will help Solana's long-term sustainability. (Cointelegraph)