Mon, May 27, 2024 at 20:56

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some interesting news about Solana's recent updates and the community's reaction to them.

  • 
• Annie

  • Oh, that sounds intriguing!

  • What's happening with Solana?😊

  
• 

  Kang-hoon

  • Recently, the Solana community passed the proposal SIMD-0096 with 77% support.

  • This proposal changes the distribution model for fees.

  • Previously, 50% of the fees were burned, and the other 50% were distributed as rewards.

  • Now, tokens deposited from the stake pool will receive all tips and prioritized fees.

• Annie

  • Interesting!

  • So, what does this mean for the validators and the network?

  
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• 

  Kang-hoon

  • The community hopes that this will increase revenue for validators and stabilize the network.

  • 

  • However, there are concerns about the inflationary effects of increased token generation.

  • One validator, Stakewiz, predicts a 4.6% increase in inflation.

• Annie

  • A 4.6% increase in inflation?

  • That sounds significant.😮

  
• 

  Kang-hoon

  • Yes, it is.

  • Stakewiz emphasizes that the activation of SIMD-0096 should be simultaneous with the activation of another proposal, SIMD-0123, to optimize block reward distribution and avoid negative effects.

• Annie

  • What does SIMD-0123 entail?

  
• 

  Kang-hoon

  • SIMD-0123 aims to optimize block reward distribution.

  • It's part of the subsequent software versions 1.17 and 1.18, which will include the new distribution model.

  • However, it will take several months to adopt these changes fully.

• Annie

  • So, the current beta version of Solana's mainnet doesn't include these updates yet?

  
• 

  Kang-hoon

  • Correct.

  • The current beta software version of Solana's mainnet does not include the new distribution model.

  • It will be incorporated in the upcoming versions 1.17 and 1.18.

• Annie

  • Got it.

  • How has the community reacted to these changes?

  
• 

  Kang-hoon

  • The community is divided.

  • Some members support the change as it will eliminate off-chain transactions that are difficult to follow and make the fee structure more transparent and fair.

  • Others are concerned about the potential inflationary effects.

• Annie

  • I see.

  • How has this news affected Solana's price?

  
• 

  Kang-hoon

  • Following the news, the price of Solana (SOL) rose and is currently trading at $170.53.

• Annie

  • That's a positive sign!

  • But I also read something about the SEC and crypto ETFs.

  • What's that about?

  
• 

  Kang-hoon

  • Yes, JPMorgan reported that the SEC won't allow Solana and other crypto spot ETFs.

  • This could impact the broader acceptance and investment in Solana and other cryptocurrencies.

• Annie

  • Oh, that's a bit of a setback.😕 So, overall, would you say this news is good or bad for Solana and its investors?

  
• 

  Kang-hoon

  • Overall, I would consider this news a positive development for Solana.

  • The changes in fee distribution and the potential for increased validator revenue could stabilize the network.

  • Despite concerns about inflation, the rise in Solana's price indicates market confidence.

• Annie

  • Thank you, Kang-hoon!

  • This was very insightful.😊

  
• 

  Kang-hoon

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.