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

Odaily News Solana’s protocol upgrade will enhance the long-term stability of the network, but may seriously affect validator earnings. In March, Solana validators will vote on two proposals (SIMD 0123 and SIMD 0228), which may result in a reduction of validator income by up to 95%.
The SIMD 0123 proposal requires validators to distribute Solana's priority transaction fees to stakers 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 to reduce token dilution and selling pressure. Matthew Sigel, head of research at VanEck, believes that although staking rewards may decline, reducing inflation will help Solana's long-term sustainable development. (Cointelegraph)