Summary and discussion of the core content of SIMD-228
Follow-up to the failure of the LST and SIMD-228 proposals
Solana’s Ecosystem Development Outlook
Solana and the United States
Discussion on Proposal SIMD-228
Q1
Mable: Summary of the core content of SIMD-228:
Problems with the existing staking model: Solana's current inflation mechanism is fixed, starting at 8% per year and decreasing by 15% per year until it stabilizes at 1.5%. As of March 2025, the inflation rate is approximately 4.68%. This fixed model cannot be flexibly adjusted based on the actual participation of the network (such as the staking rate), which may lead to excessive inflation or insufficient incentives in some cases.
Dynamic inflation mechanism: SIMD-228 proposes to link the inflation rate to the staking rate (i.e. the proportion of SOL tokens staked), and dynamically adjust it through a formula: When the staking rate is lower than the target value (e.g. 33%), the inflation rate rises to incentivize more staking; when the staking rate is higher than the target value (e.g. 50%), the inflation rate falls to reduce unnecessary token issuance. The goal is to maintain the staking level required for network security while avoiding overpayment.
Lily Liu: Yes, this is a good summary of the changes in the mechanism.
The main reasons for supporting this proposal can be seen here:
https://x.com/MaxResnick1/status/1896316441869381914
The proposal was submitted around mid-January. This is the first major economic policy change to the Solana protocol since its launch.
The reason why everyone is more motivated to propose this idea is also related to the SIMD-96 passed last year. At that time, the proposal ended the 50% destruction of block rewards (previously it was 50%). Now, all these block rewards are given to validator nodes, which is equivalent to increasing the staking APY, so some people think it is more necessary to adjust the inflation curve.
SIMD-123 is also on the ballot, which, if passed, would further distribute block rewards to stakers instead of validators. In general, block rewards become more and more important to validators’ economic income over time.
Q2
Mable: (Continued from the summary of SIMD-228 above)
Expected results:
High staking scenario: The inflation rate may be significantly reduced (even below 1%), reducing token selling pressure and increasing the long-term value of SOL.
Low stake scenario: The inflation rate increases to attract more participants and ensure network security. Overall, this mechanism makes inflation more adaptable to market conditions rather than relying on artificially set fixed parameters.
Transition and Implementation: The proposal suggests a gradual transition from the current model to the new model, originally planned for 10 epochs (about 3 weeks), which was later adjusted to 50 epochs (about 100 days) to reduce the impact of sudden changes.
Lily Liu: Great summary. Here’s some background information on validator economics:
Validators’ income usually comes from three sources:
Commission (share from inflation)
Priority Fees
MEV (Extractable Value)
The metric that adds up these revenues is called "Real Economic Value," which is the total economic return from running a validator node. Obviously, in order to ensure the health of the network, validators need to be profitable, otherwise they will not be willing to bear the fixed costs and opportunity costs of the node.
Over the past five years, as the network has grown, priority fees and MEV have accounted for an increasing proportion of validator income.
The current staking rate is about 65%. Under this proposed change, if the staking rate drops to 40%, the inflation rate will remain at the same level as it is now.
Q3:
Mable: (Continued from the summary of SIMD-228 above) 5. Controversy and Impact:
Supporters' views: They believe that this will improve the economic efficiency of the network, reduce the dilution of token value caused by inflation, support the development of DeFi and attract long-term investors.
Opponents’ view: Concerns that reduced inflation may reduce staking rewards, affect small validators and decentralization, and may threaten network stability, especially at low staking rates.
Impact on validator economics: This may cause some small validators to exit, but supporters believe that 150-200 profitable validators are sufficient to maintain network security.
Lily Liu:
Here is a summary of the “pro” viewpoints:
https://x.com/MaxResnick1/status/1896316441869381914…
Here is a summary of the “against” viewpoints:
https://x.com/calilyliu/status/1897792990585790560…
Here is the X Spaces discussion we had last week:
https://x.com/calilyliu/status/1897147753886547991…
Q4:
Cheshire (@0xCheshire): Hi, I read your tweet about SIMD-228 and was impressed by your deep understanding of economics and how interesting the Solana ecosystem is. So my question is: What do you think are Solana’s core growth challenges right now? If you had to identify 3 most important goals, how would you define Solana’s future vision?
Lily Liu: Solana is an infrastructure built for the Internet capital market. I believe that the entire industry will be led by Bitcoin and Solana in the future.
Bitcoin will become "digital gold", mainly used for storing value; and Solana will become the core technology platform of the decentralized financial network.
Today, Solana already processes 85% - 90% of transactions in the entire industry. However, many people are still focused on the Ethereum Virtual Machine (EVM) ecosystem, so they are often very surprised when they learn of this fact.
To realize the vision of "Internet capital market infrastructure", we must become the best destination for capital.
Its core logic is:
Become the best gathering place for assets;
Become the best platform for how these assets are leveraged, including products, infrastructure, and protocols.
In other words, liquidity attracts more liquidity. If you have abundant and high-quality assets, innovators and capital markets will be attracted. They will develop interesting financial products based on these assets, and these products will further attract more assets and developers.
Our future development focus is to build mid-risk assets to improve the entire ecosystem.
Q5:
Mable: You have previously expressed some thoughts on proposal SIMD-228, calling it "not mature enough."
What was the first thing that worried you when you first reviewed this proposal? Whose interests do you think SIMD-228 represents?
Lily Liu: Yes, here’s a tweet I sent out last week summarizing my concerns about the proposal:
https://x.com/calilyliu/status/1897792990585790560…
When I first read the proposal in January, I had some doubts. In fact, I thought no one would take it seriously because the original proposal was mostly qualitative analysis, casual assertions, and speculation—I would have thought that we should have required more rigorous and evidence-based arguments for such a major and far-reaching change in economic policy.
Unexpectedly, it later received more attention, and more and more people began to participate in "fine-tuning" some parameters in the new inflation curve, as well as issues such as when it would take effect.
To summarize my opinion:
SIMD-228 is based on some one-sided arguments, which at most only consider the benefits to the network layer, but do not fully consider the negative impact of this move on the on-chain asset sub-ecosystem.
For most public chains (except Bitcoin), the ecosystem can be divided into three sub-parts:
Network: The actual validating clients and the computer network that runs the blockchain
Product/Technology Platform: It is composed of various developers, applications, and communities, which make the ecosystem active and build useful products and profit models that can only exist in Web3.
Asset: The native token of the blockchain. As we all know, many people pay attention to cryptocurrencies and see primary chain tokens as a way to participate in globally scalable technology.
The core skills required for these three sub-ecosystems are different:
Network layer: Infrastructure engineer
Product layer: application developers, founders, non-technical builders
Economic layer: capital markets, business operators and various (retail or institutional) buyers
Because the people behind these three sub-ecosystems have vastly different skills and backgrounds, you can imagine there is a layer of "fog" between them. They know each other's existence, but can't quite see through each other's true dynamics. They just know roughly that "the other side is also doing something", but there is still a strong sense of distance.
These three sub-ecosystems are interconnected and have complex dependencies. If the token assets do not perform well, they will not attract developers; without excellent technology and an active developer community, there will be no sustainable user demand or token value foundation.
In short, I think SIMD-228 focuses too much on the benefits to the network layer, but ignores the impact on the ecosystem and economic layer. Perhaps it is not surprising, because the people who directly vote are validators (not stakers), and validators naturally belong to the network layer. In addition, this discussion mainly took place on public platforms such as Discord, Twitter, and Solana forums, where institutional-level people are generally not active.
Q6
Mable: You have suggested that SIMD-228 could negatively impact SOL performance during a critical growth phase for the network. How do you think this impact will manifest, for example, on validators, stakers, or even the entire SOL ecosystem?
More specifically, why do you think this proposal will reduce institutional investors’ confidence in staking Solana?
Lily Liu: In my last post, we mentioned the three major sub-ecosystems of blockchain:
Network
Products
Economy
Let’s discuss each of these separately below.
Network layer -- Pros (PRO): The use of dynamic curves can make "network security pricing" more efficient. -- Cons (CON): Small validators rely too much on inflation sharing (commissions) to make profits, rather than relying on MEV or priority fees. Therefore, some people are worried that under this dynamic mechanism, the profitability of small validators will decline, causing them to withdraw, and staking will be further concentrated in the hands of large validators.
At the product level, I think 228 itself will not have much impact on the application/builder level, unless a certain product (such as Jupiter) is also running a verification node, in which case it will be affected.
Economic Layer The main reason why I am participating in this debate is to clarify the impact that 228 may have on the asset economic layer.
My view is that "dynamic pricing" is very beneficial for the efficient allocation of resources such as "network security". But in terms of blockchain assets, "fixed income" can reduce volatility and thus reduce value discounts.
Intentionally or not, the current situation of the Solana ecosystem is that there is an entity (SOL) with strong growth prospects, while also providing attractive and predictable returns. Although there is no perfect traditional financial analogy, some people describe it as "it has the characteristics of stocks and bonds at the same time."
After all, we are a newcomer in the blockchain industry. If we want to attract more attention, high returns can quickly catch everyone's attention.
Q7
Mable: From your perspective, what alternatives or adjustments would you propose to SIMD-228 to achieve a better balance between ensuring network security and maintaining a good token economy? If you think that a higher staking yield at this stage can better promote the growth of the Solana ecosystem, when do you think is the best time to make adjustments? Or in other words, do you agree with the original design of gradually reducing staking rewards?
Lily Liu: Starting from January 1, 2026, the annual inflation reduction will be increased from 15% to 25% or 30%. Simply put, this move solves the high inflation problem that network engineers are generally concerned about, while also improving the predictability of asset return pricing.
Follow-up to the failure of the LST and SIMD-228 proposals
Q1
Guhe.hl (@ZKSgu): Currently, 90% of Solana’s stake is native stake rather than LST, which has caused a large amount of liquidity to be locked. Does the foundation think this state is healthy, or does it hope that there will be a larger proportion of LST? If it is the former, why? If it is the latter, how to improve this?
Lily Liu:
Solana’s LST (liquid staking derivative) ecosystem is the most developed in the crypto space. One reason for this is that Solana’s high inflation rate and staking annual yield (compared to other blue-chip cryptocurrencies) incentivize innovation. I personally hope to see more LST innovation, because security and liquidity are two of the most important aspects of a blockchain ecosystem, and LST is able to reconcile the two. Of course, LST is not completely fungible with each other like native SOL, which leads to a certain degree of market fragmentation. In addition, institutional holders can be very risk-averse and therefore resistant to any smart contract risk (including LST). All else being equal, I would like to see more use of LST. This will take time to develop. Sanctum has made a huge contribution in this regard; they allow issuers to create customized LSTs, which begins to merge LST with personal products and brands. This is where infrastructure and consumer products begin to merge.
Q2
Jims Young (@JimsYoung_):
After the overall dynamic inflation system is adopted, will there be corresponding adjustments to node rewards? Why is this change made? How should node participants adjust and respond?
What is the general direction of Solana after Meme and Payfi? Is it possible to adjust the chain mechanism in turn according to the application scenario?
Lily Liu: The vote has ended and Proposition 228 failed to pass, which means there will be no changes in the inflation curve for the time being.
However, staking rewards have increased. SIMD 96, passed a few months ago, increased the total amount of staking rewards go directly to validators instead of being burned in half. Proposal 123, passed last week, gives validators the option to choose (but not be obligated) to distribute these rewards directly to stakers.
The importance of block rewards to the validator economy is becoming increasingly prominent. Proposal 228 was proposed at this time, in part to offset the increase in revenue brought by Proposal 96. The proposers also hope to reduce inflation "leakage" caused by taxes and centralized infrastructure providers by adjusting the inflation mechanism.
The tax argument is that in the US, ordinary income is taxed at a high rate of 37%, and staking gains are taxed when earned. If these gains (theoretically) were to go directly to the underlying asset, they would be taxed at the long-term capital gains rate (21%) and would only be taxed when they were eventually sold. This would reduce the selling pressure on SOL tokens.
The argument about inflation “leakage” is that exchanges and custodians have strong pricing power and therefore charge large inflation rewards (e.g. 8% commissions), which benefits the wealthy in the ecosystem the most, who may not contribute to the community.
These are the main reasons for supporting Proposal 228. Now that the proposal has failed, the community will redraft a new proposal.
Currently, the community has reached a high degree of consensus in two directions:
Inflation should be lower.
Voting fees (currently 2 SOL per day) should be reduced.
Lowering voting fees (which are fixed and regressive) will penalize small validators. Hopefully, by significantly reducing voting fees, it will lower the barrier to profitability, allowing more validators to enter the network and compete for staked shares.
Regarding your second question, what will the future be after meme and PayFi. PayFi is not a short-term trend, but a long-term trend. I think the real value of blockchain lies in developing a medium-risk robust financial ecosystem. We even joked about "making blockchain boring" and focusing on building a global Internet financial layer.
Q3
BlockBeats Asia (@BlockBeatsAsia):
Lily from the Solana Foundation was a guest on Tako Chinese Top Stream. She responded to Proposal 228 by saying that the annual reduction in inflation would be increased from 15% to 25% or 30%. In short, this measure solves the high inflation problem that network engineers are generally concerned about, while also improving the predictability of asset returns pricing.
Lily Liu:
Since Proposal 228 failed to pass, a new inflation adjustment proposal will be introduced. This is a preliminary idea that will help reduce the annual staking yield and inflation rate (which is recognized by the vast majority of people) without having a significant impact on the quality of SOL assets.
Solana’s Ecosystem Development Outlook
Q1
Zishi (@silverfang88):
Background: Since last year, there have been many rumors that the Solana Foundation has intervened and supported many memes. Note: This support is not the general official traffic support such as likes and reposts, because basically it is said that the Solana Foundation (or some other core people) directly manages Sol. For example, there are always people in the market saying that the Solana Foundation supports bome, wif or manages various other memes (sillydragon, etc.).
Question: Is this true? Are there any hidden secrets in the cooperation between many projects and Sol?
Background: As for the huge project opportunity like Trump, only some people in the core circle in the United States know about it. Many people speculate that this resource was found by the Solana Foundation and then handed over to jup+meteora for distribution.
Question: Did anyone from the Solana Foundation participate in the early docking and issuance of Trump? At the same time, JUP and Meteora have cut so many people (200 million US dollars). What is the attitude of the Solana Foundation?
Background: CZ has recently gone all in on BSC and has also retweeted and promoted a lot of BSC memes, which has also been controversial. As a core figure in the foundation, how does Lily view the fact that Toly and Raj, as core founders, have also been liking and retweeting many projects (many of which have gone to zero, cutting off many people, and even many of which are scam projects)?
Question: What does Lily think about the competition from BSC? And what does she think about the issue of founders supporting some scam (or even anonymous) projects? Why do Raj and Toly support these projects?
Lily Liu:
The Solana Foundation has never supported BOME, WIF, or SILLYDRAGON, which is pure rumor. The Solana Foundation has also never participated in the issuance of TRUMP tokens, which is also a rumor.
I haven’t seen Raj and Toly promoting projects everywhere. They believe very much in the long-term success of the network and the ecosystem, and do not want to gain short-term gains at the expense of the ecosystem and retail investors. This is very different from many (perhaps most) crypto projects.
I have great respect for @BNBCHAIN and their accomplishments. The @binance team has been friends for a long time; we have grown up in this industry together. They have accomplished amazing things, and any team that can help innovate and increase adoption of DeFi and the decentralized economy is doing very important work. I think @cz_binance and Binance can play an extremely valuable advocacy role in advancing DeFi given their industry status.
Q2
Charles (@charles48011843):
I am very happy to have the opportunity to participate in this AMA, and I am also honored to directly communicate with Lily Liu, Chairman of the Solana Foundation
@calilyliu, let's discuss the future of Sol. Do you think Sol's ecological foundation has advantages over the mainnet? The previous meme has developed liquidity, and many people have won good results through memes on Sol. But memes are only temporary, I don't think they are long-term. In the future, will you have new directions or innovations to stimulate Sol users to do a defi summer on Sol? In addition, many people are currently building their own public chains. How will you respond to the emergence of new public chains?
Lily Liu:
Hi Charles, thank you very much for participating in this AMA!
In my experience of participating in the Solana ecosystem over the past four years, I have the impression that Solana was once seen as a decentralized finance (DeFi) chain, then became an NFT chain, then a game token chain, then a depin (decentralized Internet of Things) chain, and recently a lot of people are talking about meme tokens.
But if we put all of this together, we will find that Solana is a "everything can be chained".
This is how it should be: with the exception of Bitcoin, other public chains are trying to become blockchains that can support global financial infrastructure. We can call this "capital market infrastructure." If you want to be such an infrastructure, you should not focus on just one type of asset or application area, but should create an environment that can provide liquidity for all assets and have a variety of financial products, native components, and protocols across the risk spectrum.
In the past 6 to 12 months, we have seen a lot of interest in meme tokens, which can be said to be "all about price, not value", which is very straightforward.
In fact, a large part of our work is to cooperate with various financial institutions and stablecoin issuers. Compared with meme coins, these things may not seem so "sensational", but they are the foundation for truly building global financial infrastructure.
Q3
Calman (@CalmanBTC):
Solana is generally considered to be the most likely to challenge or even defeat Ethereum among all the new public chains. However, we have found that there is also a shortcoming: many assets in the real world, such as RWA assets and the largest stablecoin, are still mainly concentrated in Ethereum. Many people also believe that the real world still has more confidence in Ethereum and less confidence in Solana. What do you think about this issue? What corresponding measures does Solana have in this regard?
Lily Liu:
We have invested a lot of energy in the US and European markets because these places have traditionally had more mature and international capital markets. The most popular form of RWA (real asset tokenization) to date is money market funds, which are often the first product that many large financial institutions want to tokenize.
In addition, there are some more customized RWAs, such as home equity lines of credit (HELOCs) provided by Figure, or some permissioned assets based on private blockchain platforms such as R3/Corda.
There will be more news to come, but the reason why it is not yet fully public is that it often takes months for large organizations to support new platforms such as Solana in their internal processes. Fortunately, these efforts are being widely and comprehensively promoted.
Another idea about RWAs is that even if their issuance volume or TVL (value locked) is large, there may not be many actual transactions due to the characteristics of this type of asset.
For example, HELOC (Tako Note: (Home Equity Line Of Credit), commonly translated into Chinese as "home equity line of credit" or "home equity revolving credit", refers to a revolving line loan obtained by using the equity of a home (i.e. the market value of the home minus the unpaid balance of the home loan) as collateral) is not traded as frequently as stablecoins or low-threshold money market funds, purely because of the difference in asset type.
Therefore, a "dumbbell" phenomenon has emerged on the blockchain:
On one end are assets whose price is greater than their value, such as meme coins, which are almost entirely based on price and have no actual value;
At the other end of the spectrum are assets that are valuable but poorly priced or poorly traded, such as certain RWAs.
We need to fill the middle risk range, and we believe that unchained equities is a highly promising asset direction.
Q4
Sanyi.eth（sanyi_eth_）：
I have been communicating with my friends for some time, and I think that this round of bull market is largely due to Ethereum's inaction, while Solana has actively innovated and supported projects. From the perspective of Defi/meme/gamefi/rwa/L2, Solana's ecosystem has grown significantly compared to before, which can also be proved by the investment bias of VC. However, this round of meme has indeed brought a lot of fresh blood to Solana, but because of the insider trading caused by the VC behind the celebrity coin (Trump/Brazilian President), users have lost confidence in it. So I would like to ask a few questions
Will Solana officials take some regulatory measures for such subsequent events?
For users attracted by memes, will Solana have some new ideas and directions to ensure that these users retain?
Lily Liu: Solana is the infrastructure for the "Internet capital market", and the Solana Foundation is not responsible for application layer work.
An analogy can be made with the (early) Internet: the Internet was an open infrastructure; people all over the world used the TCP/IP and HTTP protocols.
This means that there will be all kinds of content on the Internet, some of which are "non-controversial" content that everyone agrees on, and there will also be a lot of controversial content.
In this regard, "blocking the TCP/IP protocol layer" is definitely not the solution. We have generally accepted that applications will filter information - this is the responsibility of the application layer, not the function of the underlying infrastructure.
If “assets” are considered “financial content”, then all assets can and should have the opportunity to be put on the chain, and then it is up to each application to decide whether to display or support which assets in their products.
In fact, this practice already exists to some extent, for example, centralized exchanges only list a small fraction of the assets on the blockchain.
We currently attach great importance to stablecoins and RWA (tokenization of physical assets), and are also focused on developing new financial primitives, products and protocols to build a richer risk spectrum between the current two poles: meme coins (only talk about price, not value) and money market funds.
Q5
Snowball ( xueqiu88 ):
Thank you for the invitation. Today is March 12, a day of great significance to WEB3 and the prelude to the birth of DeFi Summer. History always repeats itself in a surprising way. Today, the SOL ecosystem is standing at a crossroads similar to that of ETH: should we choose safety or pursue profits?
As a member of the SOL community, I am looking forward to the second summer of DeFi blooming in the SOL ecosystem. Chairman Liu, if the community decides to embrace the high-staking scenario, do you think SOL's DeFi has the opportunity to quickly attract users and funds like the MEME ecosystem and become the core driving force of a new round of trends? From the perspective of the foundation, are the innovation and execution capabilities of developers and the community sufficient to support the realization of this goal?
Lily Liu:
I don’t think the future of Solana DeFi will be the same as Ethereum DeFi in 2020 and 2021. The future of Solana DeFi should not be limited to Solana native tokens. Our vision is to build the infrastructure of the global Internet capital market, which means that the range of assets should not be limited to Solana native assets, or even to cryptocurrency native assets.
We welcome cryptocurrency native assets like Bitcoin and Dogecoin - these UTXO-based chains do not have native smart contracts, so there is no active DeFi ecosystem yet. We are also working with real-world asset (RWA) issuers to bring traditional financial assets on-chain.
We should not think of "DeFi" as a field divided by the underlying chain technology. The real goal has always been to develop infrastructure that can operate as a global state machine, thus becoming the best habitat for capital. This is an extremely challenging task, but so far I have not seen other ecosystems be able to execute at the speed required.
Q6
Ever-earning Xiye (@YAKING168):
The current public chain TVL growth has reached a bottleneck. Should we adopt a pump mechanism or a meme mechanism such as bonding curve to promote rapid growth of TVL?
What do you think of Pump.fun and Polymarket? Do they play a key role in the Solana ecosystem?
Toly, is there any interest in launching a coin on Pump.fun?
After SIMD-228 is passed, the inflation rate will become more market-oriented. What impact do you think it will have on Solana’s staking ecosystem and long-term value?
In your opinion, the crypto industry is heading towards a new cycle. How does SOL position itself to stand out in this wave and maximize value?
The most concerned question of the community: When will the price be raised? (joking question)
Lily Liu:
About Total Value Locked (TVL): I believe TVL is an outdated metric that does not accurately represent a strong on-chain economy. Since 2020, TVL has been used as the most important metric, and protocols are competing for the top spot in TVL.
However, measuring DeFi using TVL alone is incomplete for the following reasons:
Static TVL is not capital efficient. Take two extreme examples: if you have $1 million to invest, would you rather put all of it into a protocol with a fixed annualized return of 4% (such as Aave), or use $500,000 of it to get the same return (risk-adjusted)? TVL cannot measure profitability and capital efficiency.
Everyone benefits from the flow of funds, not the stock. Validators profit from transactions, especially controversial ones; the protocol profits from trading activity. More broadly, value comes from usage, not simply locked funds.
Therefore, the goal of decentralized finance (DeFi) should not just be to “increase TVL”.
About Pump.fun and Polymarket: Pump contributes a large amount of trading activity to the Solana ecosystem. Polymarket is not on Solana.
I highly doubt (not very likely) that Toly will issue tokens on Pump.fun.
SIMD 228 failed. This sums up my thoughts on dynamic inflation. The link you mentioned cannot be successfully resolved at this time, which may be due to problems with the link itself or related to network conditions. It is recommended that you check the legitimacy of the link and try to reload the webpage. If the problem persists, you may need to try again later.
Solana is the infrastructure for the internet’s capital markets. We are not an application chain, not a layer 2, not sharding, and not a multi-chain architecture. Almost every other blockchain has compromised its vision for short-term go-to-market (GTM) convenience or has so far failed to effectively execute its go-to-market strategy.
The Internet capital market is the original vision of blockchain, and at present, I believe that no other project except Solana can effectively realize this vision.
Q7
leo-the-horseman (@LeotheHorseman):
In the Solana ecosystem, in addition to the ecosystem related to Pumpfun, the projects I pay the most attention to and participate in are those on Daos.fun.
In my opinion, this method of raising funds using bonding curve and managing funds in a DAO way is a way to connect the Solana ecosystem and early-stage equity investment (or RWA, crowdfunding). A series of agent innovations have also appeared on it (such as ai16z), and it is more sustainable than pump.fun.
What I want to ask is, does Solana have relevant plans (such as daos/acc) to bring innovative targets with real revenue from web2 to the chain, so that users can participate early and get 100x opportunities, while also promoting innovation in web2?
Lily Liu: Thanks for the tip!
Q8
Roger BoJack (@roger9949):
Controversy over the dynamic inflation model of the SIMD-228 proposal The SIMD-228 proposal aims to balance security and economic efficiency through a dynamic inflation model, but you have previously expressed opposition in public discussions. What negative impact do you think the current model may have on the profitability of small stakers and validators? Does the Foundation plan to alleviate this problem through other mechanisms (such as subsidies or tiered incentives)? SIMD-228 may further affect the distribution of validators. Is the Foundation worried that dynamic inflation will lead to the concentration of stakes in large nodes? In the future, how can technical upgrades (such as QUIC protocol optimization) and economic models be coordinated to ensure network stability?
The gap between PayFi's vision and current implementation progress You proposed the concept of PayFi at the 2024 EthCC conference, defining it as "an instant transaction paradigm combining payment and finance", but recently you also admitted that PayFi has not yet truly realized its original intention of service payment and remains more in the transaction scenario. How does Solana plan to promote PayFi from "token exchange" to actual payment applications?
The impact of US regulatory shifts during the Trump administration on Solana's strategy. Driven by the potential regulatory benefits of the Trump administration, how does the Solana Foundation view the opportunities in this political environment and how will it advance its market layout?
Pumpfun's contribution to Solana ecosystem and risk trade-offs As a phenomenal Meme coin issuance platform in the Solana ecosystem, Pumpfun has significantly boosted on-chain transaction volume and user activity in the short term, but it has also sparked controversy over speculative bubbles, the disenchantment of encryption technology, and project sustainability. How do you evaluate the long-term value of such platforms to the Solana ecosystem?
Lily Liu:
Impact on small validators: This is not good for small validators, especially since the current voting fee (2 SOL per day) is regressive. This is why small validators overwhelmingly oppose Proposition 228. You can check this data dashboard to understand the voting situation: https://dune.com/kagren0/simd-0228-voting-status (Due to network reasons, the above webpage parsing failed. If you need the parsed content of this webpage, it is recommended to check the legitimacy of the webpage link and retry appropriately)
About PayFi: PayFi is not focused on token swaps at all - this is the first time I've heard of PayFi equal to token swaps. There are many real-world payment applications - from integration with POS systems adopted by real merchants, to projects like huma.finance, which leverages on-chain liquidity to facilitate T0 cross-border settlements. Everything in the cryptocurrency space attracts those who are focused on making a quick buck; token trading; these types of activities. This happens in every cycle, in every vertical. However, we need to focus on the real builders who are innovating to create a more accessible financial system.
US Market Environment: This is a great opportunity for crypto, and Solana in particular. We will be investing heavily in our presence in Washington, DC. We will also be investing heavily in the broader US market. We have a strong presence in the US, which remains one of the most important markets in the world for capital and talent. This is one of the reasons why we will be hosting the solana.com/accelerate event in May.
Solana and the U.S. Government
Q1
Mable: I’m really curious about what you discussed in Washington! Any directional information you can share with us would be welcome! Is there anything we can look forward to about Solana’s legitimacy and popularity?
Lily Liu: In Washington, everyone knows Solana and recognizes that we have become a beacon and leader in this industry! Now, with the policy environment more friendly than in the past 4 years (or even the past 15 years), we will invest more in our layout in Washington.
Q2
Mable: Can you tell us more about the conference that Solana will be hosting in New York in May? Is this conference mainly for US and local teams?
I’m also wondering what you think about the relationship between foundations and national governments - what do you think about Solana having a close relationship with any powerful sovereign government?
Lily Liu: Yes! We are hosting a huge event in Manhattan in the third week of May:
The United States is one of the two most important markets in the crypto industry (the other is MCM, the Chinese market). The United States has extremely deep talent and capital reserves; most other markets only have talent or capital advantages, but it is difficult to have both at the same time, and the scale is far less than that of the United States.
However, over the past four years (or even longer), the United States has been somewhere between "unfriendly" and "actively resistant" to crypto. Now the situation has finally changed. This is a rare window of opportunity for us to truly stand in the forefront and speak for the decentralized future. Moreover, Solana has a strong influence in the United States, has become a leader in the industry, and its technical strength can stand the test.
Finally, here is our overview of the Accelerate conference, with links to more:
Accelerate 2025 will be the largest crypto conference for the US market this year. More than 3,000 attendees are expected, plus an invite-only developer side event, focusing on the founder community, policy field, and institutional level led by Solana in the United States.
We will bring together founders, investors, and policymakers to develop an accelerationist and responsible roadmap for crypto innovation over the next few years.
May 19-20 Scale or Die:
https://solana.com/accelerate/scale-or-die…
May 22-23 Ship or Die:
https://solana.com/accelerate/ship-or-die…
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