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VanEck Research Director: Solana Two protocol upgrades may affect node verifiers ‘revenue

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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