Matthew Sigale, head of Vainek’s Digital Asset Research, warned that the upcoming Solan Network upgrade can greatly affect the verification’s earnings by increasing centralization risks.
Sigale underlined three major proposals – SIMD 096, SIMD 0123, and SIMD 0228 – In a post on 4 March in a post. These proposals want to improve Solana (SOL) economic structure, but the verification revenue has the ability to reduce revenue by 95%.
SIMD 096 of Solana was implemented on 12 February, eliminating the previous system burning half of these fees, rearfined 100% of the priority fee for verifications. As a result, stacking payouts increased, but off-chain trading agreements were stopped between verifications and traders.
SIMD 0123, which is currently ready to vote, will remove revenue from node operators from the need of verifications to pay priority fee to stakes.
Simd 0228, the most controversial motion set for one vote on March 6, will modify the inflation rate of Solana based on the involvement of the stake. The annual inflation rate of the network will decrease from 4.7% to 0.93% if the stacking level was at 63%. This token will reduce weakening, but will also reduce stakeing rewards, much more for the loss of verifications.
Verifications are mainly accepted about the high operating costs required to run the nodes. These include compulsory polling fee of 1.1 soul each day (approximately $ 58,000 annually) and around $ 6,000 per annum. Since only 458 out of 1,323 verifications of Solana have sufficient amount of benefit to bend the profit, small operators are put at risk.
It has been proposed to reduce voting fee as a way to reduce financial stress by many community members. Despite the controversy, Sigale said that reduce inflation will benefit the long -term Sol by reducing the pressure of sales and supporting the value of the token.
Solana’s network activity remains strong. With $ 109 billion in February, Blockchain has crossed the atherium for the fifth consecutive month, which according to Difilama shows its dominance in decentralized exchange volumes. data,
Current plans, however, may be able to operate a node for small verifications, resulting in even more centralization.
