Major Progress in Solana Governance: SIMD 0228 Proposal Sparks Widespread Discussion

The SIMD 0228 proposal ultimately failed to pass, but this process has become a milestone for the Solana ecosystem. The voter participation rate reached a historic high, approaching 50% of the total token supply, although the proportion of supportive votes did not reach the required supermajority threshold of 66.67% for passage.

The background of the proposal is that Solana has gradually returned to a calm phase after experiencing a trading frenzy triggered by Memecoin. The weekly trading volume has dropped from nearly $10 billion at the beginning of the year to less than $1 billion, a decrease of 90%, falling below the levels seen during the initial rise of Memecoin.

As the Memecoin cycle gradually wanes, Solana faces challenges of transformation and repositioning. It is at this critical moment that Proposal 0228 was put forward, sparking intense debate within the community. Stakeholders engaged in heated discussions on social media until the very last moment of the voting.

This proposal debate process reminds one of the scenes when the Ethereum community pushed for change. Although the proposal window was short, it involved many long-term considerations and short-term solutions, while also hinting at some difficult-to-express interest considerations. However, the transparency of the entire process allows us to glimpse the current attitudes and strategies of Solana's leaders.

Although the proposal was rejected, the initiators still view it as "a victory." They believe that the high participation rate and extensive community discussions demonstrate Solana's decentralized governance capabilities.

Overview of SIMD Proposal 0228

The proposal 0228 aims to maintain a staking rate of 50% by dynamically adjusting the inflation rate based on the staking rate, and to reduce the issuance rate of SOL in the long term. If passed, the short-term returns for staking SOL will decrease, while the issuance will decrease in the long term, and the staking yield will be adjusted in real-time according to the staking rate.

Supporters believe that this will reduce unnecessary token issuance, lower inflation costs, release capital to drive the development of the DeFi ecosystem, reduce the "leaky bucket effect," and enhance the autonomy of the ecosystem.

Opponents are concerned that the proposal may affect the survival of small validators, thereby undermining the degree of decentralization of Solana. They also question whether it is appropriate to implement this proposal in such a short period of time.

Considerations for Proposal Timing

The hasty launch of the proposal may stem from the following factors:

1. Solana maintains a relatively high trading volume and stable node income amidst the lingering heat of the meme coin craze.
2. Solana's Restaking is about to launch, which may bring additional rewards for stakers.
3. Referring to a similar proposal put forward by the Ethereum Foundation last year, which ultimately did not advance.

Highlights of the Governance Process

Although the proposal did not pass, the entire governance process showcased several notable characteristics of the Solana ecosystem:

1. The transparency and openness of the discussion are high, with various viewpoints openly exchanged on social media.
2. The voices of the community are given full attention, and the opinions of project parties and builders are included in the discussions.
3. High community participation, with 74% of the staked supply participating in voting.
4. The decision-making process is clear and predictable, with a defined voting mechanism and threshold for approval.
5. The efficiency from proposal submission to voting completion is relatively high, reflecting the execution capability of the ecosystem.

Conclusion

The SIMD 0228 proposal reflects the new challenges and opportunities faced by Solana after experiencing rapid growth. Although the proposal did not pass, the entire process showcased the vitality, openness, and execution efficiency of the Solana ecosystem. This experience provides valuable insights for the future development and governance model of Solana, and sets a governance example worth learning from for other blockchain projects.