Matthew Sigel, director of research at VanEck, said that the two protocol upgrades Solana plans to launch in March (SIMD 0123 and SIMD 0228) will help long-term network health, but could hit validator revenue. SIMD0123 allocates priority fees (40% of network revenue) to pledgers to increase returns and reduce over-the-counter transactions, which was voted on March 6; SIMD0228 adjusts the SOL inflation rate (currently 4%) to the pledge ratio, or cuts verifier revenue by as much as 95%, threatening small operators. As of February, Solana’s inflation rate was 4%, down from the initial 8%, but still well above the terminal target of 1.5%, and is currently falling at an annual rate of 15%, Coin Metrics reported. (Cointelegraph)
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