Unchained Solana Insiders Wanted to Reduce Inflation, but It Failed. Here’s What the Proposal’s Author Thinks - Ep. 800
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Mar 14, 2025 Tushar Jain, co-founder and managing partner at Multicoin Capital and co-author of the SIMD-228 proposal, reflects on the recent governance vote regarding Solana's inflation rate. He discusses why the proposal was essential for Solana's health, the surprising opposition from some validators, and how the governance process revealed key challenges. Jain also shares insights into a smaller successful proposal on fee sharing and hints at the possibility of revising SIMD-228 for another attempt.
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Solana Inflation History
- Solana’s inflation rate, initially adopted from Cosmos, wasn't prioritized early on.
- It now represents billions of dollars in SOL minted yearly, impacting the network's economics.
SIMD-228 Rationale
- Inflation in Proof-of-Stake systems incentivizes staking, which is crucial for network security.
- SIMD-228 proposed tying inflation to staking participation, optimizing the cost of security.
Retail vs. Wall Street
- Laura Shin points out that retail investors, not Wall Street, have historically led crypto adoption.
- She questions if attracting "Wall Street types" is the right approach for Solana.