
Solana’s recent governance vote revealed deep divisions within the community, as stakeholders grapple with inflation concerns and staking rewards. The SIMD 228 proposal’s rejection underscores the complexities of managing inflation
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SIMD-228 Inflation Proposal Rejected as Solana Community Engages in Record-Breaking Vote

The Solana ecosystem witnessed a historic moment in crypto governance as stakeholders overwhelmingly participated in a crucial vote on inflation reform, ultimately rejecting the proposal despite its significant impact. The SIMD-228 proposal aimed to transition Solana’s inflation system from a fixed schedule to a dynamic, market-based model. However, it failed to secure the necessary 66.67% approval, as it ended up attracting only 61.4% of participating votes in favor. While 43.6% of the total staked supply supported the reform, 27.4% voted against it, and 3.3% abstained. Despite the proposal’s failure , the high voter turnout, over 74% of staked supply across 910 validators participated in Solana’s governance process. SIMD-228 Ends in Defeat Multicoin Capital co-founder Tushar Jain described the event as the largest governance vote in crypto history by both participant count and market cap involvement. The proposal sought to address concerns surrounding Solana’s current inflation mechanism, which follows a predetermined path – starting at 8% annually and gradually decreasing by 15% per year until stabilizing at 1.5%. Proponents of SIMD-228 argued that dynamically adjusting inflation based on staking participation would optimize network security, reduce unnecessary token issuance, and encourage greater use of SOL in decentralized finance (DeFi). With Solana’s inflation rate at 4.66% and only 3% of the total supply staked, supporters believed the proposed model could help stabilize the network’s economic dynamics and make SOL more appealing to long-term holders. However, opponents of the reform highlighted several risks, including increased complexity, potential instability from abrupt changes in staking rates, and a negative impact on smaller validators who rely on inflation rewards for sustainability. While the proposal’s defeat means Solana’s existing inflation schedule remains in place, the vote served as a major governance stress test – one that Solana passed with high participation and strong debate. Jain added that the vote revealed opportunities for refining the governance process and hinted at potential improvements for future proposals. “I want to thank everyone who participated in the debate and put themselves in the public arena in service of advancing Solana governance. Public discourse is critically important and it takes a critical mass of people who really care. We ended up revising this proposal over 7 weeks on numerous occasions before it went to a final vote. That wouldn’t have been possible without the contributions of Solana’s passionate community.” SIMD-228 Criticisms Solana Foundation Executive Director Lily Liu had previously criticized SIMD-228, calling the proposal “too half-baked.” She argued that changes to Solana’s economics must be carefully considered, especially at this critical stage of development. The exec also criticized the dominance of network engineers in the discussion rather than asset managers, which she believed led to an imbalanced approach. Defending Solana’s fixed-rate yields, she highlighted their predictability as a key factor for institutional investors while citing the success of Solana’s staked exchange-traded products (ETPs) in Europe as proof of stability’s importance. The post SIMD-228 Inflation Proposal Rejected as Solana Community Engages in Record-Breaking Vote appeared first on CryptoPotato . CoinOtag

Chainlink and Avalanche: Key Levels to Watch Now – Breakout Opportunity or Breakdown Risk for LINK & AVAX?
Chainlink and Avalanche are at crucial points that could signal major price movements. The upcoming days hold potential changes that might either present profitable opportunities or suggest growing concerns. This article delves into which levels traders should keep an eye on to understand where LINK and AVAX might be headed next. Explore the detailed analysis to identify potential breakout or breakdown signs. Chainlink: Recent Price Swings and Key Levels to Monitor Chainlink plunged nearly 28% in the last month before bouncing back with an 18.9% gain over the past six months. Price movements ranged consistently between roughly $10 and $23, showing volatility that reflects shifting market moods. The drop followed an earlier period of strength, with clear evidence of rebalancing in recent trading sessions. Current price action places Chainlink between $10.20 and $22.70, facing resistance at about $30.59 and support near $5.58. Bearish momentum, highlighted by a negative Awesome Oscillator and low RSI, indicates subdued buying pressure. This suggests the market may trade sideways. Traders should watch these key levels for potential entry points if a reversal or upward movement toward resistance occurs. Avalanche Price Snapshot Amid Volatility Avalanche experienced a steady decline over the last month and six months with a 26.21% drop in one month and a 26.24% loss over six months, including a 10.88% dip in the past week. The coin’s price moved within a range of $16.74 to $31.56 during this time, highlighting a persistent bearish trend across these periods. Current prices sit between $16.74 and $31.56 with a key support level at $11.10 and a resistance barrier at $40.73, along with a secondary resistance at $55.54. Bears show strength with low momentum indicators and an RSI near 40. Traders can explore moves within these ranges for potential upward reversals or breakouts. Conclusion LINK and AVAX are at crucial points. Support levels will show if they can hold strong. Resistance levels will signal potential upward movement. Watching these key levels can help in understanding their future trends. The direction these coins take next will be telling. Staying informed on these movements is essential. Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Bitzo, nor is it intended to be used as legal, tax, investment, or financial advice. CoinOtag