SIMD-228 Proposal Failure at Solana: Impact on SOL Governance and Pricing

Updated

March 17, 2025

Gambar SIMD-228 Proposal Failure at Solana: Impact on SOL Governance and Pricing

Jakarta, Pintu News – Solana has just failed to pass the Solana Improvement Document (SIMD)-0228 proposal, which aims to change the token inflation system in its ecosystem. The proposal proposes a dynamic inflation model to replace the fixed inflation schedule currently used by the Solana network.

Despite being rejected by the community, Solana co-founder Anatoly Yakovenko emphasized that the fast voting process demonstrates the efficiency of network governance. According to Yakovenko, speed in making decisions is more important than ensuring that every proposal is approved. With quick decisions, network resources can be allocated to develop better approaches.

Why was SIMD-228’s proposal rejected?

Concerns about Centralization and Small Validators

Solana governance needs to be fast and decisive. I pushed for 228 really hard and it failed. It failed decisively and fast. Which means that resources can now be spent on a better approach. How fast the ecosystem iterates is a thousand times more important then making sure…
— toly 🇺🇸 (@aeyakovenko) March 15, 2025

One of the main reasons for the rejection of SIMD-228 was the concern that these changes could benefit large validators and disadvantage small validators. With a dynamic inflation model, the distribution of staking rewards could undergo changes that could potentially reinforce the dominance of large players in the Solana network.

A total of 74% of validators took part in the vote, with support from some large institutions such as VanEck. However, the majority of the community still voted to reject this proposal, reflecting concerns about its long-term impact on the decentralization of the Solana network.

Also Read: Ethereum Prediction: Recovery or Bearish Signal? Here’s the Mid-March 2025 Technical Analysis!

Impact on SOL Price

Prior to the vote, some analysts speculated that if the SIMD-228 proposal was approved, Solana prices could have experienced a significant surge. However, after the rejection, bearish pressure was still seen in the market, mainly due to external factors such as the unstaking of a large amount of SOL by Alameda Research and a decrease in trading volume in Solana DEX.

Solana Price Prediction after Proposal Rejection

Target Price of IDR3,260,000 in the Short Term

Despite the rejection of the SIMD-228 proposal, bullish investors are still hopeful that SOL could experience a major rally in the near future. Market analysts observed a similar pattern to 2021, where Solana experienced a significant price surge after a period of uncertainty.

In the short term, traders expect the SOL to reach IDR3,260,000 ($200) before the end of March 2025, despite the threat of a death cross pattern which usually indicates a potential further correction.

Long-term Potential: Can SOL Reach IDR 65 Million?

Some optimists believe that Solana has the potential to surpass Ethereum’s market capitalization in the future. This speculation is supported by the growing number of projects being built in the Solana ecosystem and the increasing volume of assets being moved from Ethereum to Solana.

If this adoption trend continues, some analysts predict that SOL could reach IDR 65,200,000 ($4,000) in the next bull market cycle. However, to reach this target, Solana will have to overcome key challenges, including market liquidity, network governance, and competition with other blockchains.

Conclusion: What’s Next for Solana?

Despite the rejection of the SIMD-228 proposal, the Solana community still shows optimism towards the network’s long-term prospects. Speed and effectiveness of governance is a key focus for developers and validators, which is expected to bring further innovation into the Solana ecosystem.

In terms of price, SOL has the potential to reach IDR3,260,000 ($200) in the near future, but investors should remain wary of market volatility. Meanwhile, Solana’s long-term prospects remain exciting, with the possibility of reaching much higher prices if adoption and development trends continue to evolve.

Also Read: XRP Predictions and Impact on Crypto Market: 8% Drop After Positive Trend March 2025

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