A proposal to modify Solana’s inflation model, dubbed SIMD-228, was rejected by stakeholders despite high voter turnout. Multicoin Capital co-founder Tushar Jain described the rejection as a victory for the governance process within the Solana ecosystem. Approximately 74% of the staked supply participated in the vote across 910 validators, but the proposal garnered only 43.6% approval, falling short of the 66.67% threshold needed for passage. The SIMD-228 proposal aimed to shift from a fixed inflation schedule to a dynamic, market-based model that would adjust inflation based on staking participation. Currently, Solana experiences an annual inflation of 4.66%, with 3% of the total supply staked. Advocates argued that the new model would enhance network security and stabilize token issuance. The proposal's failure did not significantly impact SOL prices, with a minor decline noted. Jain emphasized that the voter turnout for this proposal was greater than any US presidential election in the last century, highlighting the importance of community engagement in governance decisions.

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